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In a stock rout, world’s biggest pension fund loses $52 billion (£39.32 billion)

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The world’s biggest pension fund posted a $52 billion loss last quarter as stocks tumbled and the yen surged, wiping out all investment gains since it boosted shares and cut bonds in a strategic shift.

Japan’s Government Pension Investment Fund lost 3.9 per cent, or 5.2 trillion yen (£39.32 billion), in the three months ended June 30, it said in Tokyo on Friday.

After benefiting from a surge in Japanese equities and a weaker yen earlier in Prime Minister Shinzo Abe’s term, GPIF has posted losses as domestic stocks tumble and gains in the currency reduce the value of overseas assets. Still, for Sumitomo Mitsui Trust Bank Ltd., that’s no reason to discard the current approach.

Paul

The author Paul