Government Pension Investment Fund

Overview of Fiscal 2017

Fiscal 2017

Rate of return(Returns)

rate]
磁0+6.9( + ¥ 10,081.0 billion)

Since Fiscal 2001

rate桜
123+ .

( + ¥ 63,441.3 billion)¥ 156,383.2 billion。

[as of the end ffiscal 2017]

Asset size

Since returns are marked to market as of the end of fiscal 2017, they include unrealized gains and losses,
and they are exposed to short term market movements.
司

Cumulative returns since fiscal 2001

¥billion

3 5%70,000+63,441.3
30%

60,0002 5%50,00020%

40,0001 5%

30,00010%

20,0005%

10,0000%-5%• Cumulative returns-10%
FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012

・。
-10,000

Quarterly rate of return

FY2013 FY2014 FY2015 FY2016

FY2017-20,000

Investment Results in Fiscal 2017［1］Investment results① Rate of investment return
12.0%

The rate of investment return for fiscal 2017 is+ 6.90 %

8.0%

3.54%

4.0%
0.0%
–2.0%
–4.0%

–3.49%

3rdQ

4thQTotal

3.54%

2.97%

3.92%

–3.49%

6.90%

0.16%

0.39%

0.25%

0.80%

10.0%

15.66%

5.0%

FILP bonds

Market Investments

4.79%

8.68%

–4.72%

Q2 endQ3 endQ4 end15.66%

15.0%–0.01%
6.59%

Q1 end20.0%

Domesticbonds
Domestic
equities
Foreignbonds
Foreignequities
Short-term
assets

Total

3.92%

2.97%

2.0%

–6.0%

2ndQ

6.90%

6.58%

6.0%

due to significant gains in returns on domestic
and foreign equities.
1ｓｔQ

10.70%

Quarterly
Cumulative

10.0%

10.15%

4.45%

2.49%

1.21%

–4.28%

3.71%

0.0%

5.48%

5.55%

5.65%–6.35%

10.15%

–5.0%

0.00%

0.00%

0.00%

–0.00%–0.00%–10.0%

0.45%

0.45%

0.46%

0.48%

1.82%

6.90%

3.71%

0.80%

1.82%

– 0.00%

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

Total(Note 1) Fiscal 2017 is the year ended March 31, 2018.
(Note 2) The GPIF’s portfolio consists of funds invested in the markets (hereinafter “market investment” which is marked to market) and FILP bonds (see Note 5), which areheld to maturity and valued at amortized costs.
(Note 3) In this annual report, return figures are the average of returns of market investment and FILP bonds weighted with investment principal, and are gross of fees. The
rate of return on each asset class other than FILP bonds is time–weighted.
(Note 4) Alternative asset funds contain a mixture of asset classes, and investment returns of such funds are allocated to each asset on a pro-rata basis according to thetargeted asset composition ratio in the investment plan at the start of investment of such funds (the same shall apply hereinafter).
(Note 5) The FILP bonds are government bonds issued to finance the Fiscal Investment and Loan Program (FILP).

② Amount of investment returns¥billion
20,000+¥10,081.0 billion
due to significant gains in returns on domestic
and foreign equities.

Market Investments

Total
Domesticbonds
Domestic
equities
Foreignbonds
Foreignequities
Short–termassets

FILP bonds

4thQ

5,115.3

4,451.7

6,054.9

0–5,540.8

2ndQ

3rdQ

5,115.3

4,451.7

6,054.9 –5,540.8 10,081.0

–1.4

74.8

2,316.1

Total

112.5

362.2

1,795.9

3,407.7 –2,012.1

5,507.6

880.9

539.9

275.6 –1,022.4

674.0

1,912.4

2,034.9

2,189.9 –2,623.2

3,514.0

0.1

0.0

0.0

–0.1

–0.0

7.2

6.2

5.3

4.5

23.2

176.4

10,081.0

9,566.9

10,000–10,000(Unit : ¥billion)

1ｓｔQ

15,621.9

Quarterly
Cumulative

The amount of investment
returns for fiscal 2017 isQ1 endQ2 endQ3 endQ4 end¥billion
12,00010,081.0
5,507.6

6,000

3,514.0362.2

0–6,000

674.0

23.2
–0.0

Domestic Domestic Foreign Foreign Short-term FILP
bonds equities bonds equities assets bonds(Note 1) Investment returns are gross of fees.
(Note 2) Due to rounding, the total sum of figures in individual quarters does not necessarily match the total number.

Total

③ Cumulativereturnsandassetsizesincefiscal2001
Cumulative returns from fiscal 2001 to fiscal 2017 are+¥63,441.3 billion

and the value of investment assets at the end of fiscal 2017 is¥156,383.2 billion
C um ulativ e return¥billion

70,000+63,441.3

60,000+50,733.8

50,000+53,360.3+45,423.9

40,000+35,441.5

30,000+25,220.9+17,370.3

20,000+13,425.8
10,000+11,852.5+2,504.3

0–10,000+13,998.6+11,389.4+4,463.8+1,851.1–587.4+11,689.3–3,040.5

FY2001

FY2002

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017A sset size

¥billion

180,000
Market Investments

160,000

156,383.2

FILP bonds

140,000
120,000

119,886.8 117,628.6 122,842.5

116,317.0 113,611.2 120,465.3

FY2006

FY2007FY2010137,476.9 134,747.5102,871.4

100,000

87,227.8

80,00070,341.1

60,00040,000114,527.8

126,577.1

144,903.4

50,214.3
38,601.4

20,0000

FY2001

FY2002

FY2003

FY2004

FY2005

FY2008FY2009FY2011FY2012FY2013

FY2014FY2015FY2016FY2017(Note) The balance of FILP bonds increased from fiscal 2001 through fiscal 2007 due to increased underwriting and decreased since then due to redemption onmaturity.

④ Investment assets and portfolio allocation(Consolidated with GPIF and the Pension Special Account)

Shor t-term assets

inside： policy asset mix (ﬁgures in parentheses
indicate deviation limits)

8.70%

outside：ﬁscal 2017

Domesticbonds

25 %Foreignequities

35 %( ± 8%)

23.88 %

( ± 10 % )15%±(27.50%4%)25 %( ± 9%)

Foreignbonds

Domesticequities

14.77%

25.14%

Market value（¥billion）

Allocation ofreserve fund（A）

Policy asset mix（B）

Deviation（A–B）

Domestic bonds

44,517.8

27.50%

35%(±10%)−7.50%

Market investments

43,621.4

26.95%−−（Book value）
FILP
bonds
（Market value）

896.4

0.55%

−−（972.7）−−−

Domestic equities

40,699.525.14%

25%(±9%)0.14%

Foreign bonds

23,910.9

14.77%

15%(±4%)−0.23%

Foreign equities

38,662.9

23.88%

25%(±8%)−1.12%

Short–term assets

14,084.4

8.70%−−Total161,875.5

100.00%100.00%−(Note 1) The figures above are rounded, so the sums do not necessarily match the total number.
(Note 2) The amounts in the Market value column take account of accrued income and accrued expenses.
(Note 3) Book values of FILP bonds are book values by the amortized cost method plus accrued income.
(Note 4) While Reserve Funds as a whole include reserves managed under a special account as of the end of fiscal 2017 (about ¥5.5 trillion),
this amount is prior to adjustment for revenues and expenditures and differs from the amount in final settlement of accounts.
(Note 5) Policy Asset Mix: Domestic bonds 35% (±10%), Domestic equities 25% (±9%), Foreign bonds 15% (±4%), Foreign equities 25% (±8%).
The percentage of alternative investments is 0.13% (within a maximum of 5% of total portfolio).

The allocation changes of each asset class as a result of rebalancing, during fiscal 2017
(Unit : ¥billion)

Domestic bonds Domestic equities
Allocated/withdrawn-3,738.4+21.2

Foreign bonds

Foreign equities+3,556.1+225.2(Note 1) Each number shows the net rebalancing amount.
(Note 2) Redemptions and coupon revenue of the Special Fundfor cash outflow were ¥3,225.4 billion. Redemptions andcoupon revenue of the Special Fund for FILP bonds
were ¥774.0 billion.