JAPAN- Japan's Government Pensions Investment Fund (GPIF) saw a Y5.7trn (US$58.4bn) decline in assets in the fourth quarter of 2008 on the back of weak equity returns.
The best performer for the pension fund was domestic bonds, which returned a positive 2.5%. International bonds returned -11.24%.
The negative return on international stocks translated to a Y3.5trn fall in the market value of the overall portfolio.
Some Y2.7trn in losses was due to the negative returns on domestic stocks while international bonds caused a Y1.1trn loss in the value of the overall portfolio.
Domestic bonds accounted for a I1.5trn gain in market vale.
At December 31, the Y116trn pensions fund invested 75.9% in domestic bonds, 9.46% in domestic stocks, 7.82% in international bonds, 6.66% in international stocks and 0.17% in short-term assets.
A number of pension schemes have been prompted to lock in gains with a move into bonds after the estimated deficit across FTSE 100 DB pension schemes improved by £36bn, over the 12 months ending 30 June last year, JLT Employment Benefits found.
HM Treasury has agreed in principle to give NEST a £329m contingent liability guarantee in the event of the master trust's wind up or closure.
AMP Capital has set up a dedicated team to help institutional investors, including pension funds, invest in infrastructure through direct equity allocations.