Japan’s GPIF posts $33.3 bln Q2 loss as global bond selloff hits foreign holdings
Japan's Government Pension Investment Fund (GPIF) disclosed a loss of 5.25 trillion yen ($33.3 billion) in the second quarter, ending September 30, 2023, according to a report on Friday. The world's third-largest pension fund by assets suffered a 1.6% return on investment, a stark contrast to the 8.20% gain in the preceding quarter.
GPIF's total assets dwindled to 314.39 trillion yen by the end of September, a decline from 317.76 trillion yen during the month prior. The primary culprit behind GPIF's losses was foreign bond selloff, which plummeted by 6.52%, amounting to 5.23 trillion yen. Factors such as the surge in U.S. Treasury and Euro bond yields, as well as the yen's appreciation to 157.14 per dollar from 162.53, significantly impacted the value of GPIF's overseas holdings.
Domestic bonds experienced a 1.80% decline, while the 10-year Japanese government bond yield rose to 3.07% from 2.68%. However, the performance of domestic equities proved to be a silver lining, surging by 3.71%, or 2.88 trillion yen. For the fiscal year up to date, GPIF has chalked up a gain of 18.84 trillion yen, or a 6.42% increase.
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