Japan's Government Pension Investment Fund lost 5.25 trillion yen ($33.3 billion) in the September quarter. Rising global bond yields and a stronger yen weighed on its overseas assets, and foreign bonds accounted for nearly the entire loss.
Japan's Government Pension Investment Fund (GPIF) posted an investment loss of 5.25 trillion yen ($33.3 billion) for the three months to September 30. It reported the result on Friday. The quarter before, the fund had booked a profit of 24.09 trillion yen.
The world's third-largest pension fund by assets saw its return on investment fall to a loss of 1.6%, reversing an 8.20% gain in the prior quarter. Total assets stood at 314.39 trillion yen at the end of September, down from 317.76 trillion yen three months earlier.
Foreign bonds drive the loss
Foreign bonds fell 6.52%, or 5.23 trillion yen. Deep selling in U.S. Treasuries and Euro bonds drove a bulk of that loss. At the same time, the yen rose to 157.14 per dollar from 162.53, which further cut the yen value of overseas holdings.
Domestic bonds also lost money. They lost 1.80% as the 10-year Japanese government bond yield climbed to 3.07% from 2.68%. Foreign equities fell 1.86%.
Domestic equities offer the lone gain
Only domestic equities offset the decline, gaining 3.71%, or 2.88 trillion yen. For the fiscal year to date, GPIF has booked a gain of 18.84 trillion yen, or 6.42%.
Source: Investing.com
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