Japan’s biggest pension fund bleeding money as global economic turmoil deepens

While the Japanese government pension fund, one of the largest in the world, posted losses, there are several global business organizations that are posting similar losses.

As the global economy struggles for resilience, the Japanese Government Pension Investment Fund (GPIF), the world’s largest pension fund, has posted another quarter of losses as unveiled today. According to a CNBC report, GPIF reported a loss of 0.97% on its investment for the quarter ending December 31, 2022.

The loss, which has a monetary value of 1.85 trillion yen ($14.3 billion), comes as the fund’s fourth consecutive decline, the first in nearly 20 years. According to the fund, its biggest losers were in its overseas bonds, which fell 5.3% for the quarter. Domestic bonds returned a moderate loss of 1.7% over the same period.

Not all of its units ended in the red as its domestic stock portfolio posted a 3.2% gain. This increase was not complemented by the foreign stock portfolio which declined slightly.

The global economy has been passing through a period of intense heat since the beginning of last year. This huge economic blow came in the post-COVID-19 pandemic era. This was further complicated by the outbreak of a regional war between Russia and Ukraine. This war not only gave rise to energy crisis but also fueled global tension in the supply chain.

As a member of the G7, Japan has been at the forefront of the effects of these global economic tensions, which is one reason why the GPIF is currently under financial attack.

According to the latest quarterly loss, the GPIF’s total loss for the first three quarters of the fiscal year now stands at 3.71%, or 7.32 trillion yen. Its cumulative assets under management (AUM) now stand at 189.9 trillion yen, amid a firm-wide onslaught.

Japan’s pension fund loss: a mixed global reality

While the Japanese government pension fund, one of the largest in the world, posted losses, there are several global business organizations that are posting similar losses. American multinational tech giant Apple Inc (NASDAQ:AAPL) reported total revenue of $117.15 billion for its last quarter, a figure that came in lower than the $121.10 billion estimate, a 5.49% year-over-year consensus estimate from Refinitiv. is less.

Companies are taking to batteries around the world with many pension funds reeling from losses from bad investments. In particular, pension funds re-evaluated their investment strategies with losses from risky bets in the digital currency ecosystem following the bankruptcy situation.

Canada’s largest pension fund, CPP Investments (CPPI) has come out boldly to confirm that it will no longer be taking bets in the crypto world. Without a clear reason, many keen observers could understand the decision.

With GPIFs being hit by increased interest rates introduced by the US Federal Reserve last year, the fund could also benefit from recent increases.

Next Business News, Market News, News, Stocks

Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

Thank you!

You have successfully joined our subscriber list.


Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker