GPIF’s investment performance over the past 10 years has fallen short of the market average, and its active management has yet to produce results. With total assets estimated at approximately ¥300 trillion, attention is again turning to its investment policy.
The Government Pension Investment Fund (GPIF) is said to have performed poorly over the past 10 years, effectively recording “3 wins and 7 losses” against the market’s average return. This has prompted the view that the results of active management aimed at generating excess returns are currently insufficient.
A former GPIF executive who oversaw investments reflected that if the fund cannot beat the index after trying this hard, so be it, while also saying that adjustments must take into account the scale of its assets under management, which are around ¥300 trillion. The article discusses the difficulty of reforms suited to a “whale” holding such enormous assets.
The article provides limited additional detail on specific figures and timing, but conveys that GPIF’s active management has backfired in some respects amid market conditions to date.