Investment results for 1Q of fiscal 2020(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.
Cumulative returns and quarterly rate of return（FY2001-FY2020 1Q）

FY2020 1Q

FY2001-FY2020 1Q

Rate of investment return＋8.30% (Not annualized)＋2.97% (Annualized)

Investment returns(￥billion)＋12,486.8 (Interest and dividend
income 1,016.0)＋70,024.5 (Interest and dividend
income 38,157.2)

Total assets(￥billion)

162,092.6(End of FY2020 1Q)

Note1: 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 returns are compared from the end of the previous quarter. The same applies hereinafter.
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 returns indicate the total investment returns so far (from FY2001 to this quarter).
Note6: As these figures are preliminary, they may be subject to change in the Annual Report, etc. The same applies hereinafter.

-1-Cumulative returns since fiscal 2001

Investment returns and rate of investment return for individual fiscal years
FY2001

FY2002

FY2003

FY2004

FY2005Investment returns(￥billion)-587.4-2,453.0

4,891.6

2,612.7

8,961.9

Investment income（￥billion）

537.8

651.8

831.4

1,106.0

Rate of investment return-1.80%-5.36%

8.40%

3.39%

FY2006

FY2007

FY2008FY2009FY20103,944.5-5,517.8-9,348.1

9,185.0-299.91,347.9

1,640.7

2,000.8

2,199.4

2,193.7

9.88%

3.70%

-4.59%-7.57%

7.91%

FY2011FY20152,609.2

11,222.2

10,220.7

15,292.2-5,309.8

7,936.3

10,081.0

2,379.5-8,283.1

12,486.8

56,598.8

70,024.5

2,093.2

2,034.1

1,973.9

2,141.1

2,253.2

2,542.4

2,533.4

2,778.9

3,040.9

3,240.6

1,016.0

33,682.3

38,157.2-0.25%

2.32%

10.23%

8.64%

12.27%-3.81%

5.86%

6.90%

1.52%

-5.20%

8.30%

3.06%

2.97%

-2-FY2018

FY2019FY2001-FY2020
1Q

FY2014Note2: The figures above are rounded off, so the sum of each item does not necessarily match the total number.

FY2017

FY2006-FY2020
1Q

FY2013Note1: Investment returns and rate of investment return are gross of fees.

FY2016FY20201Q

FY2012Investment assets and portfolio allocation（Reserve Funds managed by GPIF and the Pension Special Account）
inside： policy asset mix (figures in parentheses
内側：基本ポートフォリオ
indicate deviation limits)（カッコ内は乖離許容幅）
outside：atthe end of June 2020

End of June 2020

外側：平成30年9月末

Market value(￥billion)

Allocation ofAllocation ofPension Reserve (1) Pension Reserve (2)27.49%

Domestic bonds

43,243.9

26.33%¥45,148.3 billion

48.14%
Foreign bonds

35,819.8

21.81%

Domestic equities

40,033.3

24.37%

45,148.3
164,245.3

25%
Domestic equities

27.49%
100.00%25%(±7%)

26.33%¥43,243.9 billion

50%(±11%) (±11%)24.37%

Total

25%
(±7%)

50%

51.86%
Foreign equities

Domestic bonds

Foreign equities

100.00%

(±8%)

25%
(±6%)

Foreign bonds¥40,033.3 billion

21.81%¥35,819.8 billion

Note1: Policy Asset Mix is as follows: Domestic bonds 25% (±7%), Foreign bonds 25% (±6%), Domestic equities 25% (±8%), Foreign equities 25% (±7%), Bonds 50% (±11%), Equities 50% (±11%).
Note2: JPY 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.
Note3: The percentage of the alternative investments ：0.58% (within maximum 5% of total portfolio)-3-Investment results for 1Q of fiscal 2020
≪Total investments（market investments＋FILP bonds）≫
2019

2020

Fiscal year
Total

1Q

2Q

3Q

4Q

Total

Rate of investment return (%)

-5.20

8.30

8.30

Investment returns (￥billion)-8,283.1

12,486.8

12,486.8

Total assets (￥billion)

150,633.2

162,092.6

162,092.6≪Reference≫（Market investments）（FILP bonds）
2020

2020
Fiscal year

Fiscal year

2019

2019
1Q

1Q
Modified total return (%)（Time-weighted return）

-5.24

8.35

(-5.26)(8.34)

Investment returns (￥billion)-8,300.3

Total assets (￥billion)

149,737.0

Rate of investment return (%)

1.93

0.4812,482.6

Investment returns (￥billion)

17.2

4.3

161,196.9

Total assets (￥billion)

896.2

895.6

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

-4-Rate of investment return≪Total investments≫
Fiscal year

(unit：%)
2020

2019

Rate of investment return

1Q

-5.20

2Q

3Q

4Q

Total

8.30

8.30

≪Reference≫（Market investments）
Fiscal year

(unit : %)
2020

2019

Modified total return

1Q

-5.24

2Q

3Q

4Q

Total

8.35

8.35
(unit : %)Fiscal year

2020

2019

1Q

2Q

3Q

4QTotalTime-weighted return

-5.26

8.34

8.34

Domestic bonds

-0.36

-0.46

-0.46

Foreign bonds

3.55

3.45

3.45

Domestic equities

-9.71

10.95

10.95

Foreign equities-13.08

19.99

19.99

Short-term assets-0.04－－（FILP bonds）
Fiscal year
Rate of investment return(unit：%)
2020

2019

1Q

1.93

2Q

3Q

0.48

4Q

Total

0.48

Note: Yen-denominated short-term assets are classified as Domestic bonds, and foreign currency-denominated short-term assets are classified as Foreign bonds in FY 2020.

-5-Investment returns≪Total investments≫
Fiscal year
Investment returns(unit：￥billion)
2020

2019

1Q

-8,283.1

2Q

3Q

4Q

Total

12,486.8

12,486.8≪Reference≫（Market investments）
Fiscal year
Investment returns(unit：￥billion)
2020

2019

1Q

2Q

3Q

4Q

Total

-8,300.3

12,482.6

12,482.6

Domestic bonds-122.1-187.2-187.2Foreign bonds

1,015.4

1,186.5

1,186.5

Domestic equities-3,701.5

3,968.9

3,968.9

Foreign equities-5,488.7

7,514.4

7,514.4

Short-term assets

-3.4

－－

（FILP bonds）
Fiscal year
Investment returns(unit：￥billion)
2020

2019

1Q

17.2

2Q

3Q

4.3

4Q

Total

4.3

Note: Yen-denominated short-term assets are classified as Domestic bonds, and foreign currency-denominated short-term assets are classified as Foreign bonds in FY 2020.

-6-Reference index: 1Q of fiscal 2020
○Market Information
2020/3
Domesticbonds

JGB 10-year yield(%)

2020/42020/52020/6

0.02

-0.03

0.01

0.03

Foreignbonds

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

0.67

0.64

0.65

0.66

German Government Bond 10-year yield (%)

-0.47

-0.59

-0.45

-0.45Domesticequities

TOPIX(points)

1,403.04

1,464.03

1,563.67

1,558.77

Nikkei225(\)

18,917.01

20,193.69

21,877.89

22,288.14

NY Dow($)

21,917.16

24,345.72

25,383.11

25,812.88

DAX(points)

9,935.84

10,861.64

11,586.85

12,310.93

SSEC(points)

2,750.30

2,860.08

2,852.35

2,984.67\/$

107.96106.94107.74107.89\/€118.45117.13119.84121.17

Foreignequities

FX○Benchmarks
2020 1Q

Domestic bonds-0.49%NOMURA-BPI non-ABS

Foreign bonds
FTSE World Government Bond Index (not incl. JPY, no hedge/JPY basis)

Domestic equities

2.60%
11.25%TOPIX (incl. dividends)

Foreign equities
MSCI ACWI (not incl. JPY, JPY basis, incl. dividends, before deducting taxes)-7-

19.94%