World’s biggest pension fund hit by $52bn loss

Norihiro Takahashi, new head of Japan's Government Pension Investment Fund (GPIF) speaks during a news conference in Tokyo, Japan, April 1, 2016. REUTERS/Thomas Peter

Japan’s Government Pension Investment Fund

https://www.rt.com/business/357310-biggest-pension-fund-billions-loss/

Japan’s Government Pension Investment Fund (GPIF) has posted a loss of $52 billion for April to June, following the tumbling Tokyo stock market and the yen’s surge.

The value of the fund’s assets dropped $1.3 trillion last quarter, wiping out all the gains GPIF made since October 2014, when it revised its investment strategy and put more money into stocks and foreign bonds.

The decline is another disappointment for the fund after a reported annual loss of 3.8 percent for the year ended in March, the worst performance since the financial crisis in 2008.

Concerns over the US economic outlook as well as UK’s vote to quit the European Union significantly hurt global equity markets, boosting demand for Japanese currency which was seen as a haven for investors in a time of economic uncertainty.

As a result, the yen surged against other currencies, reducing the value of overseas assets by 7.8 percent.

“The results of the UK’s referendum turned out to be different from what the market expected. And US unemployment data in May was much worse than forecast,” said Norihiro Takahashi, the president of GPIF in a statement.

———-

“The value of the fund’s assets dropped $1.3 trillion last quarter, wiping out all the gains GPIF made since October 2014, when it revised its investment strategy and put more money into stocks and foreign bonds.”

not good..

but they have the 2020 olympics if anyone is bothered going!

401

~ by seeker401 on August 30, 2016.

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