https://www.bloomberg.com/news/articles/2019-02-01/world-s-biggest-pension-fund-reports-record-136-billion-loss
Worlds largest pension loses $ 136 Bn in 3 months
In a major sentiment dampener, the Japanese Govt pension Investment Fund has lost 9.1% of its corpus ($ 136 bn) in 3 short months.
The erosion is more vicious than 2008, and is largely caused by Japanese equity markets falling, followed by overseas investments.
It maybe noted that the fund was given no choice but to invest largely in equity, given the near ZIRP (zero interest rate policy) followed by Japan, making debt instruments unviable. Something we need to keep in mind ahead of the RBI policy announcement next week
The year 2000 market decline was preceded by major pension funds witnessing major erosion, as did the 2008 Lehman crisis. Let's hope this one is not a doppelganger.
Let's be careful out there.
By: via @AlliesFin Serve T.ME/ALLiESFiN
