*Data of this report are based on the most recent official performance report released by each Fund. For more specific info on the funds performance please visit each funds’ home site.
Summary& Conclusion:
After comparison with world funds, GPIF Japan presents a significantly low return rate based on 2012 annual report. Majority of the global funds generate rate of return over 10%. Fund such as Yale endorsement and Harvard Management Company reported a low rate of return for 2012 because both fund aim for long term investment and majority of the asset is allocated in PE which tend to be risky. If we see their long term return rate both are very high.
Especially in 2012, funds who invested the alternative market in their portfolio earned more profit than those conservative funds such as GPIF Japan. GPIF Japan invest based on “low cost, low profit, low return” according to recent Reuter article on Abe reforms take aim at Japan’s $1 trillion pension fund, published July 1st, 2013. The article also point out that a more aggressive investment strategy is needed for a higher rate of return if the fund is planning to sustain its current aging population in 2030. Investment in the alternative investment as shown from big funds all over the world tend to be the best option currently. Investment return for real estate under CalPers portfolio made highest earning of 15.9% return compare with the other investments and 8.4% return in infrastructure. Other world funds invest at least 30% of their total asset in the alternative investment field. GPIF Japan is slowly making changes to their asset allocations, lowered its government bond asset from 67% to 60% while raise 1% in Japanese stocks from 11% to 12 %. According to Japanese news reports, the GPIF Japan in looking into investing in alternative investments.
Overview
Return Rate |
10.7% |
Net Asset |
$176.2B |
Average of 4 year return rate |
9.6% |
Fixed Income Includes: short term investments, bonds, long term bonds, real estate debt
Inflation-Sensitive Investments Includes: Real Return Bonds, Infrastructure, Real estate
Equity includes: US equity, PE, Global equity, Canadian Equity etc.
Other Investments include: Hedge Funds, asset allocation
2013 March. Return Rate | 10.1% |
Net Asset | $183.3B |
5 year average return rate | 4.2% |
10 year return rate | 7.4%nominal 5.5% real |
20 year Average Return Rate as of 2012 | 7.6% |
30 year Average Return Rate as of 2012 | 8.2% |
2012 Rate of Return | 4.7% |
Net Asset | $19,334.6 M |
Average 5 year return rate | 3.08% |
2012 Rate of Return | -0.05% |
Net Asset | $30.7B |
Average of 20 year return rate | 12.3% |
Return Rate | 13% |
Net Asset | $664.81B |
Equity Investment | 18% |
Fixed Income | 7% |
Real Estate | 6% |
1 year | 13.42% |
3 years | 6.61% |
5 years | 3.14 |
10 years | 5.99% |
2012 Return Rate | 3.27% |
Net Asset | $1119.296B |
Time-weighted return | 3.67% |
Domestic Bonds | 1.48% |
Domestic Stocks | 1.63% |
International Bonds | 10.3% |
International Stocks | 10.3% |
Rate of Return | 1.01% |
Net Asset Value | $233B |
# Year | Rate of Return | Benchmark |
1 | 1.01% | 1.68% |
3 | 10.62% | 12.04% |
5 | .01% | 2.73% |
10 | 6.14% | 7.14% |
15 | 5.88% | 6.32% |
20 | 7.73% | 7.89% |
Public Equity | -7.2% |
Private Equity | 5.4% |
Fixed Income | 12.7% |
Real Estate | 15.9% |
Forestland | -11.0% |
Infrastructure | 8.4% |
Liquidity | 4.6% |
Inflation Assets | 0.1% |
Absolute Return Assets | -2.0% |