SoftBank’s annual investment losses from its Vision funds have hit a record ￥5.3tn ($39bn) even as the tech conglomerate has launched a series of asset sales to address plunging valuations and a rise in global interest rates.

For the fiscal year through March, the Japanese company logged a net loss of ￥970.1bn, compared with a loss of ￥1.7tn the previous year. Analysts had expected a loss of only ￥166.5bn, according to S&P Capital IQ. In the March quarter, investment losses from Vision Fund 1 and 2, as well as its Latin American funds, amounted to ￥250bn.

SoftBank has turned to what founder Masayoshi Son has called “defence mode”, halting new investments by its funds, preparing for the listing of its UK chip designer Arm and further reducing its stake in Chinese ecommerce group Alibaba.