TOKYO (Reuters) – Japan’s Government Pension Investment Fund, the world’s largest pension fund, misplaced 5.5 trillion yen ($49.7 billion) on its investments in the primary quarter as worries about U.S.-China trade friction pushed down stocks in Japan and overseas, the fund stated on Friday.
It was GPIF’s fourth quarterly loss because it started shifting extra of its belongings into stocks whereas slashing bond allocations in October 2014.
GPIF stated overseas equities have been its worst performers in January-March with a adverse return of 6.35 %. Domestic equities suffered a unfavourable return of four.72 %.
Japan’s Nikkei 225 and the Dow Jones Industrial Average fell eight.7 % and a couple of.9 %, respectively, through the quarter after U.S. President Donald Trump in March signed a memorandum concentrating on as much as $60 billion Chinese items with tariffs.
The yen’s 5.6 % rise towards the greenback in the course of the quarter additionally eroded the worth of GPIF’s abroad belongings.
GPIF had 156 trillion yen value of belongings beneath administration as of end-March.
It allotted 25.14 % to Japanese stocks, 27.5 % to home bonds, 23.88 % to overseas stocks and 14.77 % to overseas bonds through the quarter. The remaining eight.7 % was in short-term belongings, primarily money.
According to a Reuters calculation based mostly on the fund’s outcomes, it purchased a internet 1.eight trillion yen of overseas bonds, 230 billion yen of overseas stocks and 70 billion yen of home equities, whereas decreasing 880 billion yen of JGBs.
Reporting by Takashi Umekawa; Editing by Chris Gallagher