Government Pension Investment Fund
(Jul. 5, 2019)

Overview of Fiscal 2018
Investment Results

Fiscal 2018

Since Fiscal 2001

+1.52%+3.03%(+¥2,379.5 billion)(+¥65,820.8 billion)[annual rate]

Rate of return[annual rate][annual returns](Returns)[cumulative returns]¥159,215.4 billion[as of the end of fiscal 2018]

Asset size

Returns are marked to market as of the end of fiscal 2018, and include unrealized gains and losses. Short-term portfolio
returns are influenced by the current market trends.

Cumulative returns since fiscal 2001+¥65.8 trillion[cumulative returns]¥billion
70,000

35%%
3530%

30

60,00025%

2550,00020%

20

40,00015%

1510%

1020,0005%510,0000%00-5%-5-10,000-10%-10Returns

Rate of return+3.03%

30,000[annual rate]

Cumulative returns

Quarterly rate of return-20,000

FY2001

FY2002

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018Investment Results in Fiscal 2018
[1]Investment results① Rate of investment return
The rate of investment return for fiscal 2018 is+1.52%.
(Unit: %)Market Investments

1Q

2Q

Total

1.68

3.42

Domesticbonds
Domestic
equities
Foreignbonds
Foreignequities
Short-term
assets0.14
1.03

FILP bonds

3Q

4Q

Total

-9.06

6.21

1.52

-0.79

1.01

1.07

1.43

5.89

-17.57

7.63

-5.09

0.56

1.79

-2.74

3.17

2.70

5.17

7.07

-15.71

13.91

8.12

0.00

-0.00

-0.00

0.02

0.02

0.48

0.48

0.49

0.48

1.93

%
%
12.0
12.0
10.0
10.0
8.0
8.0
6.0
6.0
4.0
4.0
2.0
2.0
0.0
0.0
-2.0
-2.0-4.0
-4.0
-6.0
-6.0
-8.0
-8.0
-10.0
-10.0
-12.0
-12.0

Quarterly
Quarterly
Cumulative
Cumulative

1.68
1.68

0.0
0.0

1.52
1.52

3.42
2.97%
3.42
2.97%

1Q
1Q

–4.31
–4.31
–9.06
–9.06

2Q
2Q

3Q
3Q%
%
10.0
10.0
5.0
5.0

6.21
6.21

5.13
5.13

4Q
4Q

8.12
8.12
2.70
2.70

1.43
1.43

-5.0
-5.0

1.93
1.93

1.52
1.52

Foreign Short-term FILP
Foreign Short-term
FILP
equities
assetsbonds
equities
assets
bonds

Total
Total

0.02
0.02

–5.09
–5.09

-10.0
-10.0 Domestic Domestic Foreign
Domestic
bonds Domestic
equities Foreign
bonds
bonds equities bonds(Note 1) Fiscal 2018 runs from April 1, 2018 to March 31, 2019.
(Note 2)	The GPIF’s portfolio consists of funds invested in the markets (hereinafter “market investment” that is marked to market) and FILP bonds (see Note 5), which are held to maturity
and valued at amortized costs.
(Note 3)	In this report, returns are calculated as the weighted average of gross market investment returns and FILP bond returns weighted by total amount invested. The rate of return
within each asset class other than FILP bonds is time–weighted.
(Note 4)	Alternative asset funds contain a mixture of asset classes, and the investment returns of such funds are allocated to each asset on a pro-rata basis according to the targeted asset
composition ratio in the investment plan at the start of investment of such funds (the same shall apply hereinafter).
(Note 5) FILP bonds are government bonds issued to finance the Fiscal Investment and Loan Program (FILP).

② Amount of investment returns¥billion
20,000Quarterly
Cumulative

The amount of investment
returns for fiscal 2018 is

10,000+¥2,379.5billion.

Interest and dividend income contributed to the positive returns, despite
unrealized losses of domestic equities.
(Unit: ¥billion)

1Q

2Q

3Q

4Q

Total

2,622.7

5,414.3-14,803.8

9,146.3

2,379.5

Domestic
bonds

61.4

-336.5

424.2

446.8

595.9

Domestic
equities

419.9

2,423.0-7,655.6

2,739.4-2,073.2

Foreign
bonds

134.0

441.2

-718.2

840.4

697.5

Foreignequities

2,003.02,882.3-6,858.1

5,113.9

3,141.1

Short-term
assets

0.1

-0.1

-0.4

1.5

1.1

FILP bonds

4.3

4.3

4.3

4.3

17.2

Market Investments

Total

2,622.7
08,037.0

9,146.3

2,379.5

5,414.3
44,517-6,766.8-10,000-14,803.8-20,000

1Q

2Q

3Q

4Q

¥billion
5,000

3,141.1
697.5

595.9

2,379.5
1.1

0

17.2

-2,073.2-5,000

Domestic Domestic Foreign
bonds equities bonds

Foreign Short-term FILP
equities
assetsbonds(Note 1) Investment returns are gross of fees.
(Note 2) Due to rounding off, the sum of each item in individual quarters does not necessarily match the total number for the fiscal year.

Total

③ Cumulative returns and asset size since fiscal 2001

Cumulative returns from fiscal 2001 to fiscal 2018 are+¥65,820.8 billion
and the value of investment assets at the end of fiscal 2018 is¥159,215.4 billion.

Cumulative return¥billion+65,820.8

70,000+63,441.3
60,000+53,360.3+50,733.8

50,000+45,423.9

40,000+35,441.5

30,000+25,220.9

20,000+17,370.3+13,425.8+13,998.6+11,852.5

10,000+11,389.4+4,463.8+1,851.1+2,504.3

0-587.4-10,000+11,689.3-3,040.5

FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

Asset size

¥billion

180,000
160,000

Market investments

156,383.2 159,215.4

FILP bonds

140,000

126,577.1
119,886.8
122,842.5
117,628.6
116,317.0 113,611.2 120,465.3
114,527.8

120,000

137,476.9 134,747.5

144,903.4

102,871.4

100,000

87,227.8

80,00070,341.1

60,00050,214.3

40,000 38,601.4
20,0000

FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018(Note) The balance of FILP bonds increased from fiscal 2001 to fiscal 2007 due to increased underwriting, and decreased since fiscal 2008 due to redemption on maturity.

④ Investment assets and portfolio allocation(Consolidated with GPIF and the Pension Special Account)
Inside: policy asset mix (figures in parentheses
indicate deviation limits)
Outside: at the end of March 2019

Foreign equities

25.53%¥41,897.5 billion

Domestic bonds

25 %

35 %

( ± 8%)( ± 10 % )15%±(26.30%¥43,162.7 billion

Short-term assets4%)

7.67%¥12,587.1 billion

25 %Foreign bonds( ± 9%)

16.95%¥27,818.7 billion(Note 5)

Domestic equities

23.55%¥38,655.6 billion
Market value(¥billion)

Allocation ofpension reserve(A)

Policy asset mix(B)

Deviation(A–B)

Domestic bonds

43,162.7

26.30%

35%(±10%)-8.70%

Market investments

42,266.4

25.75%––(Book value)
FILPbonds (Market value)

896.3

0.55%

––(957.6)–––

Domestic equities

38,655.6

23.55%

25%(±9%)-1.45%

Foreign bonds

27,818.7

16.95%

15%(±4%)

1.95%

Foreign equities

41,897.5

25.53%

25%(±8%)

0.53%

Short-term assets

12,587.1

7.67%––Total164,121.6

100.00%100.00%–(Note 1) The figures above are rounded off, so the sum of each item does not necessarily match the total number.
(Note 2) The amounts in the Market value column include accrued income and accrued expenses.
(Note 3)	The book value of FILP bonds is stated at amortized cost plus accrued income.
(Note 4)	While the pension reserve as a whole includes reserves managed under a special account as of the end of fiscal 2018 (about ¥4.9 trillion),
this amount is prior to the adjustment for revenues and expenditures and differs from the amount in the final settlement of accounts.
(Note 5)	The Policy Asset Mix is as follows: Domestic bonds 35% (±10%), Domestic equities 25% (±9%), Foreign bonds 15% (±4%), Foreign
equities 25% (±8%). Based on the current market trends, deviation limits for domestic bonds are flexibly managed as an interim measure.
Specifically, short-term assets can be added to domestic bonds within the range allocated for domestic bonds.
(Note 6) The allocation for alternative investments is 0.26% (up to a maximum of 5% of total portfolio).

⑤ Allocation changes for each asset class due to rebalancing(Unit:¥billion)

Domestic bonds Domestic equities
Allocated/withdrawn-1,950.8+29.3

Foreign bonds

Foreign equities+3,210.6+96.0(Note 1) Each figure shows the net rebalancing amount.
(Note 2) Redemptions and coupon revenue from the Special Fund forcash outflow were ¥2,159.4 billion. Coupon revenue from theSpecial Fund for FILP bonds was ¥17.2 billion.