Japan's Public Pension Fund Investment Earnings Hit Record High of 45 Trillion Yen (ANN)

GPIF (Government Pension Investment Fund), which manages Japan's public pension reserves, announced that its investment returns for last year (fiscal year 2023) reached a record high of approximately 45 trillion yen. According to GPIF, last year's earnings were 45.4153 trillion yen, exceeding the previous record of 37.8 trillion yen in fiscal year 2020. This marks the fourth consecutive year of a surplus. The rate of return was 22.67%, the second highest ever. Since the start of market operations in fiscal year 2001, the cumulative earnings have reached 153.7976 trillion yen. President Masaaki Miyazono stated, "We were able to achieve a high rate of return due to the rise in domestic and international stock markets and the weakening of the yen. We want to continue contributing to the stability of pension finances in the future." In the "Financial Verification" announced by the Ministry of Health, Labour and Welfare on the 3rd, which forecasts the level of public pension benefits every five years, the plan to extend the national pension payment period by five years was withdrawn, reflecting the favorable performance of reserve management.

GPIF uses the profits obtained through investment management for pension benefits, which is considered to greatly contribute to the long-term stability of pension finances. GPIF strives to generate stable returns through a strategy of diversified investment in various assets, including domestic and international stocks and bonds.

GPIF is also expanding its ESG (Environmental, Social, and Governance) investments, which consider the sustainability of invested companies, and is working to address global issues such as climate change. These efforts are expected to continue in the future.