Nation mulls eurobond sale

The fund’s Japanese shares sank 7.4 percent in the period as the benchmark Topix index lost 7.5 percent. More than 80 percent of GPIF’s local equity investments are passive.

Overseas stocks lost 7.8 percent, while foreign debt fell 8 percent, as the yen surged 9.1 percent against the dollar.

The only asset class to post a profit was domestic bonds, which rose in value as the Bank of Japan’s negative interest rates sent yields lower.

“We invest with a longterm view,” president Norihiro Takahashi said in a statement on Friday. “Even if market prices fluctuate in the short term, it won’t damage pension beneficiaries.”

GPIF held 21 percent of investments in local stocks at the end of June, and 39 percent in domestic bonds. Overseas equities made up 21 percent of assets, while foreign debt accounted for 13 percent.

Alternative investments were 0.05 percent of holdings, down from 0.06 percent at the end of March.

GPIF targets allocations of 25 percent each for Japanese and overseas stocks, 35 percent for local bonds and 15 percent for foreign debt. – Bloomberg BURKINA Faso may sell a eurobond to help accelerate growth in an economy that’s become increasingly reliant on income from gold mining. The nation needed $9.5 billion (R136.2bn) to carry out a fiveyear investment programme, following a year of political upheaval that rattled investor confidence, Prime Minister Paul Kaba Thieba said in Ouagadougou. That was why the government planned to meet donors and was considering raising cash on regional markets or selling a eurobond, he said. The government is trying to restart projects that stalled during a series of political crises that began in 2014 with the sudden ousting of former president Blaise Compaoré, who fled the country after a mass revolt against a bid to extend his 27-year rule. – Bloomberg