AFP, Tokyo :
Japan’s public pension fund — the world’s biggest — lost a whopping $64 billion in the July-September quarter, according to a new report, as global equity markets plunged this summer on fears over China’s economy.
The drop in the 135 trillion yen ($1.1 trillion) Government Pension Investment Fund (GPIF) — the worst quarterly fall since 2008 — came after it decided last year to double the amount of equities in its bond-heavy portfolio to generate higher returns.
The move was aimed at dealing with Japan’s soaring number of retirees who depend on the mammoth pension, but the quarterly loss highlights the risks of that strategy.
In a report on Monday, the pension fund said its total value declined by 5.6 percent, or 7.89 trillion yen in the three months to September, as Japanese and overseas share prices plunged due to fears over a sharp slowdown in China.
Beijing shocked equity markets worldwide in August with a devaluation of its currency, the yuan, setting off a precipitous drop on bourses across the globe.
The pension fund said its Japanese equity investments dropped 13 percent in the last quarter, while its international stock holdings fell 11 percent in value.
