GPIF, the Japanese government fund that manages public pensions, lost 5.234 billion yen in the quarter ending in June, a record figure which corresponds to around 46,5 billion euros.
An astronomical red for the largest pension fund in the world which, however, despite the collapse, continues to have assets in its portfolio worth 130 thousand billion yen, equal to 1.135 billion euros.
What is the reason for the collapse? According to the note, there are three main causes: the negative performance of the financial stock markets, the parallel decline of the Tokyo stock exchange and the appreciation of the yen.
Over the last year, in fact, GPIF has changed its investment strategy, focusing above all on foreign equities and bonds and reducing investments in "domestic products". But the yen's rise has driven down the value of foreign currency investments.
It should also be underlined that the performance of the quarter confirms a negative trend that has lasted for about a year. in the last 12 months, only in the third quarter of the previous year has Gpif recorded positive data, with a yield of 3,56%. In the second and in the last one, the decrease was -5,59% and -3,52% respectively.
Overall, in just six months, the world's largest pension fund dissipated 10 trillion yen (88 billion euros).
