The largest pension fund in the world has just announced a loss of multi-billion dollar, largely because of the falling value of the US dollar.
The Japanese Government Pension Investment Fund (GPIF) registered a deficit of $ 61.1 billion in the quarter of January-March, the first over-the-sign loss in all asset classes since mid-2022, report The Japan Times.
The depreciation of dollars, by 4.6% against the yen, significantly reduced the value of the international interests of GPIF.
Global stock markets also fed, with the MSCI All-Country World Index, 1.7%fell, the S&P 500 fell by 4.6%and the Topix index of Japan fell by 4.5%.
The deficit reduced the assets of the GPIF to $ 1.73 trillion, a quarterly decrease of 3.4%, because escalating US trade rates aroused concern about a worldwide economic conflict, which further weighing on shares.
In the meantime, the Japanese bond returns rose, in contrast to falling American treasury yields in the midst of the higher interest rates of the Federal Reserve.
Despite the setback, GPIF achieved a positive annual return of 0.7% for the financial year ending on March 31, 2025.
With about half of its assets tied up in foreign markets, the GPIF is likely to run due to continuous risks due to currency fluctuations and trade tensions in the coming months, while the US and Japan try to hammer a new agreement on trade.
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