AUM of the GPIF in Japan 2014-2023

As of 2014, the level of assets under management (AUM) by the Government Pension Investment Fund (GPIF) in Japan rested at 1.23 trillion U.S. dollars. This amount continued to increase before peaking in 2021, reaching 1.69 trillion U.S. dollars. As of 2023, the level of assets managed by the GPIFs rested at roughly 1.5 trillion U.S. dollars, almost double the assets of the National Pension Scheme (NPS) of South Korea. However, Japan's population is roughly 2.3 times larger.

Growth rate of the GPIF

Public Pension Funds (PPFs) are pension schemes regulated by the state. Typically, these funds are established through an initial cash injection delivered by the state from surplus revenues. The GPIF was established in Japan in 2006 by the local government, for the purpose of managing Japanese pension reserves. Through successful investment strategy and portfolio management, the GPIF has grown its AUM through means including dividend payments and generating cumulative investment income.

Global Performance

PPFs are typically required to implement a low-risk investment strategy. The GPIF reduces its risk by investing in select risk-averse assets, such as stocks and bonds. While its portfolio diversification through financial assets is limited, the pension fund splits its exposure to the domestic and foreign markets almost in half. Due to effective portfolio management, the GIPF has historically outperformed on a global scale. This trend continued into 2022, as the GPIF ranked as the world's leading pension fund.