• Kyodo News


The Government Pension Investment Fund posted a loss of ¥9.67 trillion on its investment of pension fund reserves in fiscal 2008, the largest loss since fiscal 2001, due to a plunge in stock prices and a strong yen amid the financial crisis.

The figure marked the second straight year of red ink after the pension fund reported a loss of ¥5.65 trillion for fiscal 2007, data from the independent administrative agency showed. The fund embarked on full-fledged investment in financial markets in fiscal 2001.

The results announced Wednesday reflect the severity of the global financial turmoil, triggered by the collapse of Lehman Brothers Holdings Inc. last September, which has roiled both stock and currency markets ever since.

Even combined with a profit from its investments in a type of government bond, the overall investment results were in the red with a loss of ¥9.35 trillion.

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