by Mike ‘Mish’ Shedlock
Mish Talk
Japan’s largest pension fund just lost $51 billion for the quarter. The reported results vary a bit depending on exchange rate fluctuations.
The result wipes out all gains since October of 2014. But look on the bright side: Giant Losses Imply a Shopping Spree.
The world’s biggest pension fund has room for a Japan stock shopping spree after the value of its investments tumbled last quarter.
The $1.3 trillion Government Pension Investment Fund would need to spend $53 billion on domestic shares to meet its target for the asset, according to Bloomberg News calculations, after the fund said Friday that holdings fell to 21 percent of investments at the end of June. Its goal is a quarter of the portfolio. The fund also has scope to offload $56 billion in domestic bonds after falling yields boosted their weight to 39 percent of the total, above the 35 percent level it seeks to hold.