TOKYO, March 1 (Reuters) - Japan’s giant public pension fund said on Tuesday it earned 4.7 trillion yen ($41.8 billion) in the October-December period as both domestic and foreign equities rose, pushing its asset value to 139.8 trillion yen.
The Government Pension Investment Fund (GPIF) earned 2.9 trillion yen on domestic equities and 1.5 trillion yen on foreign equities during the quarter, the fund said.
As of end-December, the GPIF had 37.76 percent of its assets in Japanese government bonds, 23.35 percent in Japanese equities, 13.50 percent in foreign bonds, 22.82 percent in foreign equities and 2.57 percent in short-term assets.
The fund sold 1.05 trillion yen in JGBs and bought 430 billion yen in Japanese equities during the quarter, Reuters calculations based on the GPIF’s data show.
The GPIF decided in 2014 to double the allocation for share holdings while slashing investments in low-yielding government bonds, in line with a push from the government for greater returns and risk-taking.
Its new portfolio targets 35 percent of total assets in JGBs and 25 percent in both domestic and foreign stocks.
However, the fund suffered a record 7.9 trillion yen loss in the previous quarter due to market turmoil triggered by China’s economic slowdown. And it has lost about 510 billion yen through the first nine months of the fiscal year that began in April.
With the stock market in a downtrend since the start of 2016, the GPIF could go into the red on a full fiscal-year basis for the first time since 2010/11, during which northeast Japan was hit by a devastating earthquake and tsunami. ($1 = 112.3500 yen) (Reporting by Takashi Umekawa; Editing by Richard Borsuk)