(Jul.7,2017)

Overview of Fiscal Year 2016
Investment results
Fiscal Year 2016

Since Fiscal Year 2001

+5.86 %

+2.89 %

［annual rate］

Rate of return( Returns )（ + ￥ 7,936.3 billion ）［annual returns］［annual rate］（ + ￥ 53,360.3 billion ）［cumulative returns］￥ 144,903.4 billion［as of end of fiscal 2016］

Asset size

Since returns are marked to market as of the end of fiscal 2016, they include unrealized gains and losses,
and they are exposed to short-term market movements.

Cumulative returns since Fiscal 2001
30.00%25.00%
20.00%
15.00%

53,360.3+2.89 %
Returns + ¥ 53,360.3 billion

Rate of return¥billion
60,00050,000［annual rate］

40,000［cumulative returns］

30,00010.00%

20,0005.00%

10,0000.00%

0-5.00%‒10,000

Cumulative returns‒10.00%Quarterly rate of return

FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016‒20,000

Investment Result in Fiscal Year 2016
［1］Investment results① Rate of investment return
10.0%

The result for Fiscal Year 2016 is+ 5.86 %

7.98%Quarterly
Cumulative

8.0%
6.0%

5.86%

5.66%

4.0%

1.84%

2.0%

0.21%

0.0%

due to positive returns on domestic andforeign equities.

–2.0%–2.12%–4.0%–3.88%–6.0%

Q1 endQ2 endQ3 endQ4 end20.0%

Market Investments

Total
Domesticbonds
Domestic
equities
Foreignbonds
Foreignequities

FILP bonds

1ｓｔQ

2ndQ

3rdQ

4thQ

Total

–3.88%

1.84%

7.98%

0.21%

5.86%

1.91%

–1.34%–1.07%–0.32%–0.85%–7.38%

7.14%

15.18%

0.52%

14.89%–8.02%–0.22%

8.82%–3.09%–3.22%–7.76%

3.65%

16.46%

2.56%

14.20%

0.44%

0.44%

0.45%

0.45%

1.77%

14.89%

15.0%

14.20%

10.0%

5.86%

5.0%

0.00%

0.0%

–0.85%–5.0%–10.0%

1.77%–3.22%
Foreignbonds

Domestic Domestic
bonds
equities

Foreignequities

Short-term
assets

FILP
bonds

Total

(Note 1) Fiscal 2016 is the year ended March 31, 2017.
(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 4), 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) The FILP bonds are government bonds issued to finance the Fiscal Investment and Loan Program (FILP).

② Amount of investment returns¥billion
15,000

The result for Fiscal Year 2016 is+¥7,936.3 billion

Quarterly
Cumulative2,374.6–5,000(Unit : ¥billion)

Market Investments

Total
Domesticbonds
Domestic
equities
Foreignbonds
Foreignequities
Short–term
assetsFILP bonds–5,234.2

4thQ

Total

2,374.6 10,497.1

298.8

7,936.3

938.3–667.1–519.0–148.1–395.8–2,257.4

2,023.4

4,608.3

180.4

4,554.6–1,519.3–39.8

1,576.2–613.3–596.2–2,410.7

1,045.5

3rdQ

4,821.1

871.3–5,234.2

0.0

0.0

0.0

0.0

0.0

12.6

10.5

8.4

46.4

Q1 end–2,859.6
Q2 endQ3 end

Q4 end¥billion
10,0007,936.3
4,554.6

5,00004,327.3

14.9(Note) Investment returns are gross of fees.

298.8

0–10,000

2ndQ

7,936.3

7,637.5

5,000

due to profits on domestic and foreign equities.

1ｓｔQ

10,497.1

10,000–5,0004,327.3
0.0–395.8–596.2

Domestic Domestic
bonds
equities

Foreignbonds

Foreign Short-term
equities
assets

46.4

FILP
bonds

Total

③ Cumulative returns and asset size since fiscal year 2001
Cumulative returns from fiscal 2001 to fiscal 2016 are+¥53,360.3 billion

and the value of investment assets at the end of fiscal 2016 is¥144,903.4 billion¥billion

C um ulativ e return

60,000+53,360.3+50,733.8
50,000+45,423.9

40,000+35,441.5
30,000+25,220.9+17,370.3

20,000+13,425.8+11,852.5

10,000+1,851.1+4,463.8–10,000+13,998.6+11,689.3+2,504.3

0–587.4+11,389.4–3,040.5

FY2001

FY2002

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016

A sset size

¥billion

160,000
Market Investments

140,000

137,476.9

FILP bonds

114,527.8

120,000

119,886.8 117,628.6 122,842.5

116,317.0 113,611.2

120,465.3

126,577.1

134,747.5

144,903.4

102,871.4

100,000

87,227.8

80,00070,341.1

60,00040,00050,214.3
38,601.4

20,0000

FY2001

FY2002

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016(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
Outside：ﬁscal 2016

8.89%

Domesticbonds

25 %Foreignequities35 %( ± 8%)

23 . 12 %( ± 10 % )15%±(31.68%4%)

25 %( ± 9%)

Foreignbonds

Domestic
equities

13.03%

23.28%

Market value（¥billion）

Allocation ofreserve fund（A）

Policy asset mix（B）

Deviation（A–B）

Domestic bonds

47,870.7

31.68%

35%（±10%）−3.32%

Market investments

46,223.6

30.59%−−（Book value）FILPbonds（Market value）

1,647.2

1.09%

−

−

（1,748.5）−−−

Domestic equities

35,178.4

23.28%

25%（±9%）−1.72%

Foreign bonds

19,681.7

13.03%

15%（±4%）−1.97%

Foreign equities

34,926.2

23.12%

25%（±8%）−1.88%

Short–term assets

13,436.5

8.89%

−

−

Total

151,093.5

100.00%100%−(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 2016, this amount is prior toadjustment 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 0.07% (within a maximum of 5% of total portfolio).
(Note 6) The notes above apply to the following pages as well.

The allocation changes of each asset class as a result of rebalancing, during fiscal 2016
(Unit : ¥billion)

Domestic bonds Domestic equities
Allocated/withdrawn−4,580.9+45.0Foreign bonds

Foreign equities+1,339.2−471.3(Note 1) Each number shows the net rebalancing amount.
(Note 2) Redemptions and coupon revenue of the Special Fundfor cash outflow were ¥3,374.1 billion. Redemptions andcoupon revenue of the Special Fund for FLIP bonds were
¥1,841.5 billion.