The largest pension fund in the world reported a loss of 52 bln. dollars in the last fiscal quarter after the collapse of stock prices and the appreciation of the yen, reported Bloomberg.
The Japanese Government Pension Investment Fund lost 3.9 percent or 5.2 trillion yen (52 billion dollars) in the three months ended June 30. So the fund’s assets decreased to 129.7 trillion yen.
This erases 4.1 trillion yen investment returns for the previous six quarters from October 2014.
The quarterly decline follows the loss of 5.3 trillion yen in the fiscal year to March, the worst annual data from the global financial crisis onward.
After winning from the earlier surge in Japanese equities and the devaluation of the national currency, the Fund reported a lost after the decline in stocks and the appreciation of the Japanese yen, reducing the value of overseas assets.
“Since its investments are tied to market moves, it’s natural that this would happen and there’s no point looking at it with a short-term view,” said Ayako Sera, a strategist at the Tokyo-based Sumitomo Mitsui Trust Bank.
The fund holds 21% from its investments in local shares at the end of June and 39% in Japanese bonds.