Japan’s Government Pension Investment Fund, the largest pension fund worldwide, posted its biggest yearly loss since the Great Recession – $52bn.
Editor’s Remarks: The entity has been heavily criticised following its decision to double its stocks allocation and lower its investments in domestic bonds back in 2014. Overall, its take on investments is seen as passive. The fund, however, seems to be following a similar strategy as the Bank of Japan (BOJ) in terms of favouring stocks. The BOJ announced on Friday it would double down on its Japanese stock buying programme, to ¥6bn (some £43bn) this year. While the announcement was somewhat disappointing to markets expecting more QE or a change in interest rates, stock investors will undoubtedly cheer the decision.
What to watch: Japan’s economy, Bank of Japan Monetary Policy, Japanese stock prices