World's biggest pension fund reports worst post-crisis results

Tokyo

THE world's biggest pension fund has posted the worst annual performance since the global financial crisis, with losses exacerbated by unfavourable currency moves and a foray into equities.

Japan's US$1.3 trillion Government Pension Investment Fund (GPIF) lost 3.8 per cent for the year ended March 31, or 5.3 trillion yen (S$69.4 billion), the retirement manager said on Friday in Tokyo. That's the biggest drop since the year ended 2009.

GPIF lost 10.8 per cent on domestic equities and 9.6 per cent on shares in other markets, while Japanese bonds handed the fund a 4.1 per cent gain.

The annual loss - GPIF's first since doubling its allocation to stocks and paring domestic bond holdings in October 2014 - came during a volatile stint for markets. Japanese shares sank 13 per cent in the year through March while the yen climbed 6.7 per cent against the dollar, reducing returns from overseas investments. The only asset class to post a pro…