Government Pension Investment Fund
(Jul. 2, 2021)

Overview of Fiscal 2020
Investment Results

Since Fiscal 2001

Fiscal 2020

+25.15%+3.61%[annual rate]

Rate of return[annual rate][annual returns][cumulative returns](+¥37,798.6 billion)(Returns)(+¥95,336.3 billion)

As of the end of fiscal 2020

¥186,162.4 billion

Asset size

Returns are marked to market as of the end of fiscal 2020, and include unrealized gains and losses. GPIF manages
pension reserve fund with long-term perspective. While short-term portfolio returns are influenced by the current
market trends, investment results should be monitored with long-term horizon.
Regarding investment of pension reserves, while market fluctuations may cause capital losses (realized and unrealizedlosses due to price fluctuations) in the short term, investment income (interest and dividend income), which hasincreased steadily since fiscal 2001, is relatively immune to such volatility.

Cumulative returns since fiscal 2001(¥billion)

95,336.3

100,000

63,441.3

50,733.8

40,00025,220.9
17,370.3

20,00013,425.8537.8

1,189.6-587.4-3,040.50

2,021.1

4,463.8

1,851.1 3,127.0

4,474.9

11,852.5 10,315.7 12,509.4
6,115.5

14,602.6

16,636.7

11,689.3 11,389.4

20,751.8

53,360.3

57,537.7

45,423.9

35,441.5

23,005.0

65,820.8

25,547.4

28,080.830,859.7

33,900.6

37,141.2

40,154.0

18,610.7
13,998.6

8,116.4
2,504.3-20,000
FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

Investment income

60,000Capital gains

80,000Investment Results in Fiscal 2020
[ 1 ] I n v e s t m e n t re s u l t s
Rate of investment return / Amount of investment returns
The rate of investment return for fiscal 2020 is+25.15 %The amount of investment returns for fiscal 2020 is+¥37,798.6 billion

.

1Q.

2Q

3Q

4Q

Total

8.29%

3.03%

6.18%

5.65%

25.15%¥12,486.8 billion¥4,923.7 billion¥10,352.8 billion¥10,035.2 billion¥37,798.6 billion-0.45%

0.18%

0.02%

-0.44%-0.68%-¥183.0 billion¥79.6 billion¥11.5 billion-¥147.9 billion-¥239.8 billion

3.45%

0.64%

1.21%

1.60%

7.06%

¥1,186.5 billion¥208.0 billion¥524.0 billion¥755.3 billion¥2,673.8 billion

10.95%

4.93%

11.27%

9.26%

41.55%¥3,968.9 billion¥1,959.9 billion¥4,651.7 billion¥4,118.4 billion¥14,698.9 billion

19.99%

5.99%

11.88%

12.04%

59.42%¥7,514.4 billion¥2,676.3 billion¥5,165.6 billion¥5,309.5 billion¥20,665.8 billion

Total

Domestic bonds

Foreign bonds

Domestic equities

Foreign equities(Note 1) Calculating the rate of investment return
The rate of return within total assets and each asset class is time-weighted, and is gross of fees (the same shall apply hereinafter).
(Note 2) Classification of FILP bonds
FILP bonds are government bonds issued to finance the Fiscal Investment and Loan Program (FILP).
 otal and Domestic bonds include FILP bonds. JPY hedged foreign bonds and yen-denominated short-term assets are classified as Domestic bonds, and foreignTcurrency-denominated short-term assets are classified as Foreign bonds.
 ILP bonds were reclassified as trading securities from held-to-maturity securities as of the end of January 2021. However, the rate of investment return on FILP
Fbonds has been calculated as time-weighted on a market value basis since April 2020, as is the case with other asset classes.
 he amount of investment returns was evaluated, pursuant to the accounting standards for incorporated administrative agencies, on a purchase price basis (or aT
price calculated using an amortized cost method when there is a gap between the subscription price and the face value) until the end of January 2021, by which
FILP bonds had been classified as held-to-maturity securities. Since the reclassification to trading securities in February 2021, it has been evaluated on a market
value basis until disposal.
(Note 3) Calculating investment returns
Investment returns are gross of fees.
(Note 4) Alternative assets
 lternative 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 toA
the targeted asset composition ratio in the investment plan at the start of investment of such funds (the same shall apply hereinafter).
 he rate of time-weighted investment return on total alternative assets for fiscal 2020 is 6.55% (infrastructure at 5.71%, private equity at 4.44%, and real estate
Tat 7.95%).
(Note 5) Other
Due to rounding off, the sum of each item in individual quarters does not necessarily match the total number for the fiscal year.
Fiscal 2020 runs from April 1, 2020 to March 31, 2021.

Cumulative returns and asset size since fiscal 2001
Cumulative returns from fiscal 2001 to fiscal 2020 are+¥95,336.3 billion
and the value of investment assets at the end of fiscal 2020 is¥186,162.4 billion.

Cumulative return(¥billion)+95,336.3

100,000
90,00080,000+65,820.8+63,441.3

70,00060,000+50,733.8

50,000+35,441.5

40,000+45,423.9+17,370.3+13,425.8+11,852.5 +11,689.3 +13,998.6+2,504.3+4,463.8+11,389.4+1,851.1

20,00010,000-10,000+57,537.7+25,220.9

30,0000+53,360.3-587.4 -3,040.5
FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

Asset size(¥billion)

200,000

186,162.4

Market investments

180,000

FILP bonds

156,383.2 159,215.4

160,000
140,000
120,000

114,527.8

113,611.2

120,465.3

126,577.1

150,633.2

102,871.4

100,000

87,227.8

80,00070,341.1

60,00040,000119,886.8 117,628.6 122,842.5 116,317.0

137,476.9 134,747.5

144,903.4

50,214.3
38,601.4

20,0000

FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020(Note) T he balance of FILP bonds increased from fiscal 2001 to fiscal 2007 due to underwriting. There were no outstanding FILP bonds as of the endof fiscal 2020 due to redemption on maturity since fiscal 2008.

Investment assets and portfolio allocation(Pension reserves managed by GPIF and the Pension Special Account)
Inside: policy asset mix (figures in parentheses
indicate deviation limits)
Outside: at the end of March 2021

Domestic bonds

Foreign equities

24.89%¥47,818.0 billion

25 %25.92%¥49,807.8 billion

25 %( ±7%)( ±7%)

50 % 50 %( ± 11% ) ( ± 11% )

25 %

25 %

( ±8%)

Domestic equities( ±6%)

Foreign bonds

24.61%¥47,294.3 billion

24.58%¥47,227.3 billion

Market value(¥billion)

Allocation ofPension Reserve (1)Domestic bonds

49,807.8

25.92%

Foreign bonds

47,294.3

24.61%

Domestic equities

47,227.3

24.58%

Foreign equities

47,818.0

24.89%

Total

192,147.3

100.00%

Allocation ofPension Reserve (2)50.54%

49.46%

100.00%(Note 1) T he figures above are rounded off, so the sum of each item does not necessarily match the total number.
(Note 2) T he amounts in the Market value column include accrued income and accrued expenses.
(Note 3) W hile the pension reserve as a whole includes reserves managed under the pension special account as of the end of fiscal 2020 (about ¥6.0 trillion),
this amount is prior to the adjustment for revenues and expenditures and differs from the amount in the final settlement of accounts.
(Note 4) J PY hedged foreign bonds and yen-denominated short-term assets are classified as Domestic bonds, and foreign currency-denominated short-term
assets are classified as Foreign bonds.
(Note 5) T he percentage of the alternative investments: 0.70% (within maximum 5% of total portfolio)

Allocation changes for each asset class due to rebalancing

Allocated/withdrawn(Unit: ¥billion)

Domestic bonds

Foreign bonds

Domestic equities

Foreign equities+3,716.0+9,837.1-3,002.4-10,009.1(Note) Each figure shows the net rebalancing amount.