Japan's Government Pension Investment Fund, Tokyo, on Monday reported a 5.6% drop for its fiscal second quarter ended Sept. 30, leaving its investment portfolio valued at 135.1 trillion yen ($1.1 trillion).
For the quarter, the world's biggest pension fund suffered losses of 4.3 trillion yen on its domestic stock holdings and 3.7 trillion yen on its allocations to international stocks.
Domestic stocks accounted for 21.3% of the portfolio, down from 23.4% at the end of the prior quarter. International stocks slipped to 21.6% from 22.3%.
In a volatile quarter for global markets, the TOPIX benchmark index for Japanese equities dropped just less than 13% while the GPIF's composite index for international equities tumbled 11%.
In a potential sign of the political sensitivities the GPIF faces in its recent shift to a relatively high risk-high reward portfolio, the pension fund — for the first time in its quarterly results — included benchmark index data for the first month of the current quarter, which showed a strong rebound for October that erased the bulk of the prior quarter's losses.