Investment results for 1Q of fiscal 2018(update report)

Government Pension Investment Fund (GPIF) manages the public pension fund in the long-term and its investment results
should be assessed in the same manner. In addition to the annual report, which is legally required, GPIF publishes thequarterly update report to enhance the transparency to the public.
Please note that the results include the change of the fair market value and that the results tend to fluctuate in accordancewith the market movement.

Rate of investment return(Investment income/loss(￥billion))2018 1Q

From fiscal 2001
to 1Q of fiscal 2018

＋1.68％(Not annualized)(＋2,622.7 (Interest and dividendincome 1,004.2))＋3.18％(Annualized)(＋66,064.0 (Interest and dividendincome 31,863.9))

158,580.0(End of 1Q of fiscal 2018)

Total assets(￥billion)¥billion

Cumulative returns and quarterly rate of return（FY2001-2018 1Q）

35%+66,064.0

70,00030%

Rate of return＋3.18％（annual rate）

60,00025%

Returns＋¥66,064.0 billion（cumulative returns）

50,00020%

40,00015%

30,00010%

20,0005%

10,0000%

0-5%-10,000
Cumulative returnsQuarterly rate of return-10%-20,000
FY2001

FY2002

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018Note1: The GPIF’s portfolio consists of the funds invested in the markets (hereinafter “market investment,” which is marked to market) and FILP bonds (Fiscal Investment and Loan Program bonds), which are held to maturity andNote0: valued at amortized costs.
Note2: Return figures are the average of returns of market investment and FILP bonds weighted with investment principal, and are gross of fees.
Note3: Periodic rate of return and periodic investment income are compared from the previous quarter.
Note4: Rate of investment return (annualized) is calculated as a geometric mean of the annual rate of return from FY2001 to this quarter.
Note5: Cumulative income indicates the total investment income/loss so far (from FY2001 to this quarter).
Note6: As these figures are preliminary, they may be subject to change in the Annual Report etc.

-1-Reference index : 1Q of fiscal 2018○Market Information
2018/3
Domesticbonds
Domesticequities
ForeignbondsFX

2018/6

0.05

0.06

0.04

0.03

(points)

1,716.30

1,777.23

1,747.45

1,730.89(\)

21,454.30

22,467.87

22,201.82

22,304.51

2.74

2.96

2.86

2.86

Nikkei225

U.S. Treasury 10-year yield (%)

0.50

0.56

0.34

0.31

($)

24,103.11

24,163.15

24,415.84

24,271.41

DAX(points)

12,096.73

12,612.11

12,604.89

12,306.00

SSEC(points)

3,168.90

3,082.23

3,095.47

2,847.42\/$

106.35109.43108.65110.77\/€130.79132.21126.82

129.32German Government Bond 10-year yield (%)
NY DowForeignequities

2018/5(%)

JGB 10-year yield
TOPIX

2018/4○Benchmarks
2018 1Q

Domestic bonds

0.13%

Composite Benchmark

0.20%

NOMURA-BPI non-ABS

Domestic equities
TOPIX (incl. dividends)
Foreign bonds

1.05%

FTSE World Government Bond Index (not incl. JPY, no hedge/JPY basis)
cf. FTSE World Government Bond Index (not incl. JPY, Local currency basis)

Foreign equities
MSCI ACWI (not incl. JPY, JPY basis, incl. dividends, after taking into account our dividend tax factors)
cf. MSCI ACWI (not incl. JPY, Local currency basis, incl. dividends, after taking into account our dividend tax factors)-2-0.76%-0.29%

5.16%
2.99%

Investment assets and portfolio allocation（Reserve Funds managed by GPIF and the Pension Special Account）
End of June 2018
Market value(￥billion)
Domestic bonds
Domestic equities

Short-term assets
6.65%¥10,708.0 billion

Allocation ofReserve Funds

43,705.8

27.14%

41,139.925.55%

Foreign bonds

24,706.0

15.34%

Foreign equities

40,775.3

25.32%

Short-term assets
Total

10,708.0
161,035.1

Foreign equities
25.32%¥40,775.3 billion

25%

(±8%)

-3-(±10%)

25%

(±9%)
Foreign bonds
15.34%¥24,706.0 billion

Note１: Policy Asset Mix (Domestic bonds 35%(±10%), Domestic equities 25%(±9%), Foreign bonds 15%(±4%), Foreign equities 25%(±8%))Note２: The percentage of the alternative investments ：0.17% (within maximum 5% of total portfolio)

35%

Domestic bonds
27.14%¥43,705.8 billion

15%

(±4%)

6.65%
100.00%inside： policy asset mix (figures in parentheses
indicate deviation limits)outside：at the end of June 2018Domestic equities
25.55%¥41,139.9 billion

Investment results for 1Q of fiscal 2018
≪Total investments（market investments＋FILP bonds）≫
2017

2018

Fiscal year
1Q

2Q

3Q

4Q

Total

1Q

2Q

3Q

4Q

Total

3.54

2.97

3.92

-3.49

6.90

1.68

0.00

0.00

0.00

1.68

Investment income/loss (￥billion)

5,115.3

4,451.7

6,054.9-5,540.8

10,081.0

2,622.7

0.0

0.0

0.0

2,622.7

Total assets (￥billion)

149,198.7

156,817.7

162,672.3

156,383.2

156,383.2

158,580.0

0.0

0.0

0.0

158,580.0

Rate of investment return (%)≪Reference≫（Market investments）（FILP bonds）
2018

Fiscal year

2017

2018
Fiscal year

2017

1Q

6.94

1.68(6.99)(1.68)

Investment income/loss (￥billion)

10,057.8

Total assets (￥billion)

155,486.8

Modified total return (%)（Time-weighted return）

1Q
Rate of investment return (%)

1.82

0.48

2,618.4

Investment income/loss (￥billion)

23.2

4.3

157,684.2

Total assets (￥billion)

896.4

895.8

Note1: Fiscal year ends on March 31.
Note2: FILP bonds; Fiscal Investment and Loan Program bonds.

-4-Investment return≪Total investments≫
Fiscal year

(unit：%)
2018

2017

Rate of investment return

1Q

2Q

3Q

1.68 ‐

6.90

‐

4Q

Total‐

1.68≪Reference≫（Market investments）
Fiscal year

(unit : %)
2018

2017

Modified total return

1Q

2Q

3Q

1.68 ‐

6.94

‐

4Q

Total

‐

1.68
(unit : %)Fiscal year

2018

2017

1Q

2Q

3Q

4Q

Total

Time-weighted return

6.99

1.68 ‐‐‐

1.68

Domestic bonds

0.80

0.14 ‐‐‐

0.14

Domestic equities

15.66

1.03 ‐‐‐

1.03

Foreign bonds

3.71

0.56 ‐‐‐

0.56

Foreign equities

10.15

5.17 ‐‐‐

5.17

Short-term assets-0.00

0.00 ‐‐‐

0.00（FILP bonds）
Fiscal year
Rate of investment return(unit：%)
2018

2017

1Q

1.82

2Q

3Q

0.48 ‐

‐

-5-4Q

‐

Total

0.48

Investment income/loss≪Total investments≫
Fiscal year
Investment income/loss(unit：￥billion)
2018

2017

1Q

10,081.0

2Q

2,622.7

3Q

0.0

4Q

0.0

0.0

Total

2,622.7≪Reference≫（Market investments）

Fiscal year

(unit：￥billion)
2018

2017

1Q

2Q

3Q

4Q

Total

Investment income/loss

10,057.8

2,618.4

0.00.00.0

2,618.4

Domestic bonds

362.2

61.4

0.0

0.0

0.0

61.4

Domestic equities

5,507.6

419.9

0.0

0.0

0.0

419.9

Foreign bonds

674.0

134.0

0.0

0.0

0.0

134.0

Foreign equities

3,514.0

2,003.0

0.0

0.0

0.0

2,003.0

Short-term assets

-0.0

0.1

0.0

0.0

0.0

0.1

（FILP bonds）

Fiscal year
Investment income/loss(unit：￥billion)
2018

2017

1Q

23.2

2Q

4.3

3Q

0.0-6-

4Q

0.0

0.0

Total

4.3

Historical data on investment income and investment return¥billion

Cumulative returns and quarterly rate of return（FY2001-2018 1Q）

35%+66,064.0

70,00030%

Rate of return＋3.18％（annual rate）

60,00025%

Returns＋¥66,064.0 billion（cumulative returns）

50,00020%

40,00015%

30,00010%

20,0005%

10,0000%

0-5%-10,000
Cumulative returns

Quarterly rate of return-10%-20,000
FY2001

FY2002

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2018 FY2006-2018 FY2001-2018
Apr to Jun
1Q
1Q

FY2001

FY2002

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017

Investment income(￥billion)-587.4-2,453.0

4,891.6

2,612.7

8,961.9

3,944.5-5,517.8-9,348.1

9,185.0-299.92,609.2

11,222.2

10,220.7

15,292.2-5,309.8

7,936.3

10,081.0

2,622.7

52,638.3

66,064.0

Rate of investment return-1.80%-5.36%

8.40%

3.39%

9.88%

3.70%

-4.59%-7.57%

7.91%-0.25%

2.32%

10.23%

8.64%

12.27%-3.81%

5.86%

6.90%

1.68%

3.36%

3.18%

Note: Fiscal year ends on March 31.

-7-