Core Viewpoint - The Japanese Government Pension Investment Fund (GPIF) reported a significant loss of over 8.8 trillion yen (approximately 611 billion USD) in the first quarter of the year, primarily due to the depreciation of the yen against the dollar and a decline in domestic investments [1][2]. Group 1: Financial Performance - In the first quarter, GPIF experienced a total loss of 8.815 trillion yen, equating to a 3.4% decline [1]. - As of the end of March, GPIF's total assets stood at 249.8 trillion yen, with an annual return rate slightly increasing by 0.7% [1]. - All four major asset categories (Japanese stocks, Japanese bonds, overseas stocks, and overseas bonds) reported losses, marking the first time since Q3 2022 that all categories experienced declines [1]. Group 2: Market Conditions - The losses were attributed to a broader downturn in global stock markets, with the S&P 500 index falling by 4.6%, the MSCI All Country Index declining by 1.7%, and the Tokyo Stock Exchange index dropping by 4.5% [2]. - The bond market also faced challenges, with the 10-year U.S. Treasury yield decreasing by over 30 basis points, while Japanese government bond yields rose by approximately 40 basis points [2]. - The dollar-yen exchange rate fell by about 4.6%, exacerbating the losses in overseas assets when measured in yen [2]. Group 3: Management Response - GPIF President Kazuto Uchida indicated that the poor investment performance in Q1 was primarily due to the significant drop in overseas stocks and mentioned a consideration to increase the proportion of actively managed investments [4].