While the world’s largest Japanese government pension fund posted its losses, there are a number of global trading teams posting similar losses.
As the global economy continues to struggle for resilience, the world’s largest pension fund, the Government of Japan Pension Investment Fund (GPIF) has posted another quarter of losses as reported by meet today. according to a report According to CNBC, the GPIF reported a 0.97% loss on its investments in the quarter ended December 31, 2022.
The loss, which has a monetary value of 1.85 trillion yen ($14.3 billion), marks the Fund’s fourth consecutive decline, the first time in about 20 years. According to the Fund, the biggest losses it incurred were on its foreign bonds which fell 5.3% in the quarter. Domestic bonds showed a moderate loss of 1.7% in the same period.
Not all of his units ended in the red, as his portfolio of domestic stocks posted a 3.2% gain. This appreciation was not complemented by the portfolio of foreign shares that decreased slightly.
The world economy has been under intense heat since the beginning of last year. This immense economic blow came as a consequence of the era of the COVID-19 pandemic. Then it was further aggravated by the outbreak of a regional war between Russia and Ukraine. This war not only precipitated an energy crisis but also fueled a global tension in the supply chain.
As a member of the G7, Japan has been at the forefront of the impacts of these global economic tensions. This explains one of the reasons why the GPIF is currently facing a financial avalanche.
Based on the latest quarterly loss, GPIF’s total loss for the first three quarters of the fiscal year now stands at 3.71%, or 7.32 trillion yen. Amid the broader onslaught on the company, its cumulative assets under management (AUM) now stands at 189.9 trillion yen.
Japan Pension Fund Losses: Mixed Global Reality
While the world’s largest Japanese government pension fund posted its losses, there are a number of global trading teams posting similar losses. American multinational technology giant apple inc (NASDAQ:AAPL) reported total revenue of $117.15 billion for its prior quarter, a number that pales in comparison to the estimated $121.10 billion, 5.49% below Refinitiv’s year-over-year consensus.
Companies are taking a battery around the world with a number of pension funds reeling from losses from malinvestments. In particular, the losses incurred from risky bets in the digital currency ecosystem following the wave of bankruptcies have caused pension funds to re-evaluate their investment strategies.
Canada’s largest pension fund, CPP Investments (CPPI) has come out boldly assert You will no longer be placing bets in the world of cryptocurrencies. Without a definite reason, many keen observers might understand the decision.
As the GPIF was affected by the interest rate increase set by the US Federal Reserve last year, the Fund may also benefit from the recent moderate increases.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about the real-life applications of blockchain technology and innovations to drive mainstream acceptance and global integration of emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based sites and media. Benjamin Godfrey is a lover of sports and agriculture.
