TOKYO, March 3 (Reuters) - Japan's Government Pension Investment Fund, the world's largest pension fund, posted its the best quarterly gain on record thanks to a rally in the country's stock market.
GPIF on Friday reported a return of 7.98 percent in its fiscal third quarter, which ended in December.
Its paper gain totalled 10.5 trillion yen ($92 billion). The fund managed 144.8 trillion yen worth of assets as of December.
Japan's benchmark Nikkei share index rallied 16 percent in the quarter on expectations of stronger global economic growth and as the yen weakened in the face of a surging U.S. dollar following the election of President Donald Trump.
It edged up another 2 percent in January-March this year.
GPIF in 2014 made a historic policy shift, increasing its investments in riskier assets such as stocks for higher returns, while it reduced its reliance on low-yielding domestic bonds.
Of all the pension reserve, which also included 2.5 trillion yen pooled at Japan's health ministry, 23.76 percent was allocated to Japanese stocks.
GPIF directly invests only in a portion of bonds, while it asks other financial institutions to manage most of the bonds and all the stocks.
$1 = 114.0900 yen Reporting by Junko Fujita; Editing by Kim Coghill