The Government Pension Investment Fund (GPIF) of Japan achieved a positive rate of return of 1.5% for fiscal year 2022 (ending March 31, 2023) despite facing market volatility. The strong performance in the fourth quarter, with a 5.41% return, helped offset negative returns in the previous three quarters. Equities, both foreign and domestic, played a significant role in the positive performance, with returns of 8.19% and 7.03% respectively.
GPIF’s risk management abilities were tested in a year of large market fluctuations, but the rebound in the fourth quarter contributed significantly to the overall returns. While alternative investments made up a small portion of the portfolio, they delivered a robust time-weighted investment return of 9.45%.
According to GPIF’s CIO, Eiji Ueda, the fund performance compares favourably to peers globally. GPIF’s focus going forward will be on improving profitability within the portfolio rather than seeking excessive risk to boost performance.