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Japanese pension fund's $A68 billion loss

AAP logoAAP 26/08/2016

Japan's Government Pension Investment Fund, or GPIF, the world's biggest pension fund, lost $US52 billion ($A69 billion) between April and June owing to the strengthening of the yen and the negative response of markets to Brexit.

This is the second consecutive quarterly loss since the GPIF changed its policy to buy more risky assets in 2014, a decision driven by current Prime Minister Shinzo Abe's government.

Between April and June, the rate of return on its investment stood at -3.88 per cent, according to a document released Friday by the fund that managed some $US1.29 trillion during the quarter.

The GPIF lost around $US24 billion in foreign securities, which make up around 21 per cent of its portfolio, during these three months.

Losses in domestic markets - the fund's main investment focus, comprising 40 per cent of its assets - added up to $US22.5 billion.

Significant losses of $US15.1 billion were also registered in foreign sovereign bonds, which is, however, a mere 13 per cent of the fund's portfolio.

Meanwhile, positive returns on its Japanese sovereign bonds of $US9.34 billion did little to improve the negative balance. EFE

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