- Japan’s Government Pension Investment Fund (GPIF) is the world’s largest pension fund.
- GPIF was hit hard by this summer’s global stock rout, which wiped out $64B.
- The loss is GPIF’s first (see chart) since doubling its allocation to stocks and reducing debt last October. It highlights the risk of the fund’s more aggressive investment style.
- Fund managers have argued that holding more stocks and foreign assets is a better approach as Japanese Prime Minister Abe seeks to spur inflation that would erode the purchasing power of bonds.
- Source: Bloomberg
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