Japan’s Government Pension Investment Fund (GPIF), the world’s largest pension fund, posted an astounding performance of +25.15%, or 37.8 trillion yen, in FY2020. Although such a huge fund has little discretion as it is strictly bound to its benchmarks, GPIF planed to increase its asset allocation to foreign equity and the timing of buying foreign equities successfully coincided with the big market plunge of the coronavirus crisis in 2020. After GPIF increased the weight of equity exposures, the global equity markets have rebounded sharply.

Normally, performance declines as fund size increases, but most hedge funds would have lost to this world’s largest pension fund.

Congratulations!

GPIF 2020 performance

– World’s Top Pension Fund Books ‘Historic’ $339 Billion Gain
https://finance.yahoo.com/news/world-biggest-pension-fund-books-063000441.html
– Government Pension Investment Fund: Overview of Fiscal 2020 (Jul 2,2021)
https://www.gpif.go.jp/en/performance/annual_report_fiscal_year_2020_en.pdf