Fiscal Year 2019 Review of Operations
Transitional Long-term Benefit Association Reserve Fund

全国市町村職員共済組合連合会
National Federation of Mutual Aid Associations for Municipal
Personnel

Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

Table of Contents
・ Investment Results (Overview)・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 3【Section 1 Administration and Investment of Funds in FY2019】
1 Market environment・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 5
2 Investment results(1) Asset mix・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 6(2) Investment return・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・7(3) Contribution analysis of excess return・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 8(4) Investment income・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・10(5) Value of assets・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・11(6) Fees・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・12
3 Review of benchmark portfolio・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 13
4 Risk management(1) Approach to risk management・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・14(2) Risk management efforts・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 15(3) Status of risk management (overall assets)・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 17
5 Stewardship activities・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 18
6 Other major efforts・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 20【Section 2 Fund Investment System, etc. of the Federation】
1 Organizational structure・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 22
2 Fund Management Committee・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 25
3 Basic approach to investment・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 27【Section 3 Reference Data】
1 Changes in the investment results・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 29
2 Issues held ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・30
2

Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

Investment Results (Overview)

Investment return-4.97% Modified total return (market value basis)(FY2019)

Investment income -JPY284.2 billion Investment income(FY2019)(market value basis)

Value of investment assets: JPY5,302.4 billion Total market value(End of FY2019)* As pension funds are intended for long-term investment, the investment status must be judged from the long-term
perspective.
As investment income is based on the total market value as of the end of each term, it should be kept in mind thatit includes valuation gains/losses, which means it may change depending on market movements.
(Note) The return and income represent figures after the deduction of fees, etc. settled within the relevant period.

3

Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

Section 1 Administration and Investment of Funds in FY20194

Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

1 Market environment

Change in benchmark return
The benchmark return for overall assets continued to be positive until the third quarter. However, as domestic andforeign equity prices fell steeply due to the spread of novel coronavirus infections in the fourth quarter, the benchmark
return for the full year came to minus 4.83%.
120

Foreign equities

115
110

Domestic equities

105
100

Domestic bonds
95

Foreign bonds
90
85
80
75
Mar. 31, Apr. 30, May. 31, Jun. 30, Jul. 31, Aug. 31, Sep. 30, Oct. 31, Nov. 30, Dec. 31, Jan. 31, Feb. 29, Mar. 31,
2019
2019
2019
2019
2019
2019
2019
2019
2019
2019
2020
2020
2020

(Note) The level as of March 31, 2019 is the base figure of 100.
Asset class

Returns

Benchmark

Q1

Q2

Q3

Q4

Domestic bonds NOMURA-BPI Overall

0.91%

0.40%

-1.05%-0.43%-0.18%

Domestic equities TOPIX (with dividends)-2.35%

3.39%

8.59%

-17.45%-9.50%

Japan; without hedging, yen-based)

0.73%

1.32%

0.52%

1.74%

4.37%

Foreign equities MSCI ACWI ex. JAPAN (yen-based, with dividends)

1.25%

0.17%

9.78%

-22.14%-13.31%

Total

0.26%

1.30%

4.23%

-10.09%-4.83%

Foreign bonds

FTSE World Government Bond Index (excluding

Full fiscal year

(Note) The total is the return calculated by weight-averaging the benchmark returns for individual asset classes based on
the shares in the asset mix of the benchmark portfolio.

5(Source: Bloomberg)

Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

2 Investment results(1) Asset mix
The composition by asset is as follows:(Unit: %)FY2019FY2018End of FY

End of Q1

End of Q2

End of Q3

End of Q4(End of FY)

Benchmarkportfolio

Domestic
bonds

35.0

Domestic
equities

24.9

24.4

25.1

25.9

23.4

25.0

Foreign
bonds

15.0

15.3

15.1

14.7

16.7

15.0

Foreignequities

23.5

24.1

24.0

25.3

22.1

25.0

Short-term
assets

1.5

0.8

1.3

0.9

1.1

-

Total

100.0

100.0

100.0

100.0

100.0

100.0

35.4

34.5

33.2

36.8

35.0

Composition by Asset Class(as of end of FY2019)
Short-term
assets1.1%Foreignequities
22.1%

Foreign
bonds
16.7%

Domestic
bonds
36.8%

Domestic
equities
23.4%(Reference) Breakdown of domestic bonds(Unit: JPY100M)
End of FY2019(Note 1) Deviation tolerances from the benchmark portfolio are ±15% for domestic bonds, ±14% for domestic equities,±6% for foreign bonds and ±12% for foreign equities.
(Note 2) Due to rounding, the total sum of individual figures may not necessarily add up to 100%.
(Note 3) Loans and invested real properties are included in domestic bonds.
(Note 4) Short-term assets held by each fund were classified into relevant asset classes in principle.

Domestic bonds
Privately placed municipal
bonds
Invested real property

6

Value of assets

Composition

19,533100.0%

1,340

6.9%

0

0.0%

Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

2 Investment results(2) Investment return
Changes in modified total return

The modified total return for FY2019 was -4.97% for the overall assets.
(Unit: %)6.00%

FY2019Q1
Modified total return

0.06

Q2
1.17

Q3
4.33

8.00%

Q4
-10.16

FY total
-4.97

5.57%

4.00%
2.00%

4.33%
1.23%

0.06%

1.17%

0.00%
-2.00%

Domestic bonds

0.68

0.31

-0.76

-0.60

-0.34

-4.00%-4.97%-6.00%

Domestic equities

-2.41

3.35

8.71

-17.52-9.00

Foreign bonds

0.73

1.34

0.70

1.25

4.07

-8.00%

Each quarter-10.00%Aggregate-10.16%-12.00%Q1

Foreign equities
Short-term assets

1.28
0.00

0.16
0.00

9.56
0.00

-22.23
0.00

Q2

Q3

Q4

-13.33Modified total return by asset(aggregate for the fiscal year)

0.00
7.50%

4.07%

5.00%

(Unit: %)Realized return

2.50%
0.00%

FY2019

0.00%

Q1

Q2

Q3

Q4

0.57

0.78

0.92

0.66

FY total-2.50%

2.94-5.00%-0.34%-4.97%-7.50%(Note 1) The return in each quarter is the period rate.
(Note 2) Loans and invested real properties are included in domestic bonds.
(Note 3) The modified total return and realized return represent figures after the deduction of fees, etc. settled
within the relevant period.
(Note 4) The amount of interest related to the adjustment of the economic burden on the national treasury andpublic organizations transferred from the employees’ pension insurance account to the transitional
long-term account is included in the figures for domestic bonds.

7-10.00%-9.00%-12.50%-13.33%-15.00%
Domestic Domestic
bonds
equities

Foreignbonds

Foreign Short-term Overall
equities
assetsassetsTransitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

2 Investment results(3) Contribution analysis of excess return ①
The modified total return for overall investment assets was -4.97%, while the excess return compared with the benchmark returnwas -0.14%.
As for the asset allocation factor, underweight of domestic bonds made negative contributions.
As for the individual asset factor, domestic bonds and foreign bonds made negative contributions.
FY2019 (April 2019 through March 2020)
OverallassetsModified total return
Benchmark return*(Unit: %)Domesticbonds

Domestic
equities

Foreignbonds

Foreignequities

-4.97

-0.34

-9.00

4.07

-13.33

-4.83

-0.18

-9.50

4.37

-13.31

-0.14

-0.16

0.51

-0.30

-0.02

Excess Returns (by Asset Class)
1.00%
0.75%
0.51%
0.50%
0.25%
0.00%

Excess return* The benchmark return for overall assets is calculated by weight-averaging the benchmark
returns for individual asset classes based on the shares in the asset mix of the benchmark
portfolio. Due to rounding, the total sum of individual figures may not necessarily add up to
the total.

Asset allocation
factor①

Individual asset
factor②①＋②

Domestic bonds-0.05%-0.11%-0.16%

Domestic equities-0.03%

0.09%

0.06%

Foreign bonds-0.02%-0.07%-0.09%

Foreign equities

0.04%-0.04%

0.00%

Short-term assets

0.04%-0.00%

0.04%

Total

-0.02%-0.12%-0.02%-0.25%-0.14%-0.16%-0.30%-0.50%-0.75%-1.00%Overall assets

Domestic bonds Domestic equities

Foreign bonds

Foreign equities(Reference) Deviation of the Federation's portfolio (book value averagebalance + accrued income as of the end of previous period + valuation
gains/losses as of the end of previous period) from the benchmark portlolio-0.14%

Federation's
portfolio

Benchmarkportfolio

Deviation

Deviation
tolerance

Domestic bonds

35.0%

35.0%

-0.0%

±15%

Domestic equities

25.0%

25.0%

-0.0%

±14%

Foreign bonds

15.0%

15.0%

0.0%

±6%

25.0%

-0.9%

±12%

Foreign equities

24.1%

Short-term assets

1.0%

Total

100.0%

1.0%
100.0%(1) Asset allocation factor: A factor that is attributable to the difference between the asset mix of the fund and the benchmark portfolio.
(2) Individual asset factor: A factor that is attributable to the difference between the modified total return and benchmark returns concerning each asset class.

8

0.0%

2 Investment results

Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)(3) Contribution analysis of excess return ②○ Domestic bonds
The modified total return of domestic bonds was -0.34%, which was below the benchmark return (-0.18%) by 0.16%.
A benchmark factor related to 20-year ladder-type investments, which account for 90% of the outstanding balance, made negative
contributions.
○ Domestic equities
The modified total return of domestic equities was -9.00%, which exceeds the benchmark return (-9.50%) by 0.51%.
Regarding passive funds, the return exceeded the benchmark due to the positive effects of the successful timing of some asset sales,
resulting in a positive excess return for overall domestic equities. As for active funds, some growth-style funds performed strongly, but
for some smart beta funds, the manager benchmark fell far short of the return for TOPIX. In addition, as for active funds, some valuestyle funds and funds mainly investing in small- and mid-cap stocks performed poorly due to an adverse market environment, resulting
in the return lower than the benchmark.

○ Foreign bonds
The modified total return of foreign bonds was 4.07%, which was below the benchmark return (4.37%) by 0.30%.
The modified total return was negatively impacted, as the return for the Bloomberg Barclays Global-Aggregate index (1.96%), which
is used as a manager benchmark by more than half of active funds, fell far short of the benchmark return (4.37%). In addition, somefunds using the aggregate index as a manager benchmark delivered a lower return than the benchmark because of the unsuccessful
results of country-by-country allocation and bond selection related to industrial bonds and mortgages when the market was disrupted
due to concerns over the global economy toward the end of the fiscal year. As a result, the excess return for overall foreign bonds was
negative.
○ Foreign equities
The modified total return of foreign equities was -13.33%, which was below the benchmark return (-13.31%) by 0.02%.
Regarding passive funds, the successful timing of some asset sales made positive contributions, resulting in a higher return than thebenchmark. However, as the return for active funds fell short of the benchmark, the excess return for overall foreign equities was
negative. As for active funds, the performance varied widely from fund to fund according to the strategy adopted. Investment
performance was poor for some funds that invested in companies selected because they were judged to be attractive according tointernal evaluation standards.

9

Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

2 Investment results(4) Investment income
Changes in investment income

The investment income for FY2019 was -JPY284.2 billion (for overall assets).

(Unit: JPY100M)(Unit: JPY100M)

Investment income

33

3,190

2,500

FY2019
Q1

3,500

2,488

1,500

Q2

Q3

Q4

FY total

670

2,488

-6,032-2,842

702
670

33

500
-500
-1,500

Domestic bonds

138

63

-151

-119

-68

Domestic equities

-344

468

1,259

-2,669-1,286

Foreign bonds

63

116

61

109

350

Foreign equities

175

22

1,319

-3,354-1,838

Short-term assets

0

0

0

0

0

-2,500-2,842-3,500Each quarter-4,500Aggregate-5,500Q1

Q3Q3(Unit: JPY100M)
1,000

FY2019Q2

Q2

Investment income by asset(aggregate for the fiscal year)(Unit: JPY100M)

Q1-6,032
Q4-6,500Q4

FY total

350

500

0

0

Realized income

278

382

449

322

1,431

(Note 1) The investment income and realized income represent figures after the deduction of fees, etc.
settled within the relevant period.
(Note 2) The investment income represents the realized income adjusted for the effects of changes invaluation gains/losses based on market value.
(Note 3) Realized income represents the sum of trading profits/losses and interest and dividend income, etc.
(Note 4) Loans and invested real properties are included in domestic bonds.
(Note 5) The amount of interest related to the adjustment of the economic burden on the national treasury
and public organizations transferred from the employees’ pension insurance account to thetransitional long-term account is included in the figures for domestic bonds.
(Note 6) Due to rounding, the total sum of individual figures may not necessarily add up to FY total.

10

-500

-68

-1,000-1,500-1,286-2,000-1,838-2,500-3,000-2,842-3,500
Domestic Domestic
bonds
equities

Foreignbonds

Foreign Short-term Overall
equities
assetsassetsTransitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

2 Investment results(5) Value of assets
The book value, total market value and valuation gains/losses by asset is as follows.
(Unit: JPY100M)

Book
value

Domesticbonds
Domestic
equities
Foreignbonds
Foreignequities
Short-term
assetsTotal

FY2019FY2018End of FY

End of Q1

End of Q2

End of Q3

Total
marketvalue

Total
marketvalue

Total
marketvalue

Total
marketvalue

Valuation
gains/losses

Book
value

Valuation
gains/losses

Book
value

Valuation
gains/losses

Book
value

End of Q4 (End of FY)
Valuation
gains/losses

Book
value

Total
marketvalue

Valuation
gains/losses

18,269 20,293

2,024 18,120 20,263

2,144 17,759 19,854

2,095 17,836 19,730

1,893 17,899 19,533

1,635

12,090 14,426

2,336 11,980 13,962

1,982 12,007 14,430

2,423 12,029 15,359

3,330 11,936 12,400

464

8,607

8,670

63

9,513 13,630

4,117

886

886

49,365 57,906

0

8,589

8,733

145

9,615 13,805

4,190

466

466

8,541 48,769 57,230

0

8,461

8,670

209

9,714 13,827

4,113

767

767

8,461 48,708 57,548

0

8,505

8,731

226

9,717 15,046

5,329

529

529

0

8,614

8,840

227

9,750 11,692

1,942

559

559

0

8,840 48,616 59,394 10,779 48,756 53,024

4,268(Note 1) Due to rounding, the total sum of individual figures may not necessarily add up to Total.
(Note 2) Loans and invested real properties are included in domestic bonds.
(Note 3) Short-term assets held by each fund were classified into relevant asset classes in principle.

The amounts of funds allocated and withdrawn in FY2019 by asset class are as follows.
(Unit: JPY100M)

Domestic bonds Domestic equities Foreign bonds
Amount of funds
allocated and withdrawn

-692

-740

-180

Foreign equities-100(Note) The above figures are the total sums of asset cancellations (cash-out) for the purpose of securing funds for pension benefits and fund transfer for each asset
class related to asset cancellation and reinvestment for the purpose of asset portfolio mix adjustment (rebalancing).

11

Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

2 Investment results(6) Fees
The amount of fees totaled about JPY3.1 billion in fiscal year 2019.
The fee rate relative to the value of investment assets came to 0.04%.
(Unit: JPY100M, %)FY2019Fees

Fee rate

Domestic bonds

0

0.00

Domestic equities

13

0.09

Foreign bonds

5

0.06

Foreign equities

13

0.09

Overall assets

31

0.04

(Note 1) Fees include management fees and custodian fees related to investment.
(Note 2) The amount of fee is rounded off to the nearest hundred million yen.
(Note 3) Fee rate = fee amount/month-end market value average balance12Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

3. Review of benchmark portfolio

Mechanism of the review of the benchmark portfolio and the results
1. Mechanism of review
In accordance with the basic policy on the administration and investment of the Transitional Long-term Benefit Association Reserve
Fund, the National Federation of Mutual Aid Associations for Municipal Personnel (hereinafter the “Federation”) shall, if it is considerednecessary in cases, such as that the investment environment assumed at the time of establishing the benchmark portfolio deviates fromreality, examine the benchmark portfolio and revise it as necessary. To reflect the amendment to the administration and investment
policy due to the revision of the benchmark portfolio for the entire Local Public Service Mutual Aid Associations based on the current
status and outlook for profit and loss related to the transitional long-term benefits (prepared by the Pension Fund Association for Local
Government Officials based on the results of the FY2019 Actuarial Valuation), the Federation decided to review its benchmark portfolio(amended on March 31, 2020, effective from April 1, 2020).
2. Result of review
As a result of the estimation of an asset portfolio mix which achieves the effective return required for pension finance (1.7%) andwhich meets risk constraints, the benchmark portfolio has been revised as follows.
○Revised benchmark portfolio

Domestic bonds

Domestic equities

Foreign bonds

Foreign equities

Asset mix

25%

25%

25%

25%

Deviation tolerance

±20%

±12%

±9%

±11%

(Note) Short-term assets are classified as domestic bonds.

○Attributes of the benchmark portfolio
Effective return

Nominal return

Standard
deviation

Downward
probability

Conditional average
shortfall rate

1.7%

4.0%

12.3%

44.4%

9.2%

(Note) The downward probability refers to the probability of the return falling short of the wage growth rate, while the conditional
average shortfall rate refers to the average shortfall rate when the return is lower than the wage growth rate.

(Reference) Benchmark portfolio before revision
Domestic bonds

Domestic equities

Foreign bonds

Foreign equities

Asset mix

35%

25%

15%

25%

Deviation tolerance

±15%

±14%

±6%

±12%

13

4 Risk management

Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)(1) Approach to risk management○ Generally speaking, "risk" refers to danger or a possibility of negative impact. In the field of asset investment, risk means
uncertainty of returns, etc. associated with market volatility or other factors. (”Uncertainty of returns” refers to thepresence of the risk of the value of assets rising as well as falling)○ Risks in the field of asset investment include interest rate fluctuation risk, price fluctuation risk, credit risk and liquidity risk.
Therefore, it is important to understand the magnitude and multifaceted impacts of various risks commensurate withinvestment from a long-term perspective.
○ The Federation appropriately implements risk management concerning investment in accordance with the implementation
policy for risk management concerning investment of the funds in consideration of the points including the following: thatinvestment of funds should be made safely and efficiently from a long-term perspective; and that diversified investments
should be maintained in principle.
Implementation policy for risk management concerning investment of the fund (extract)
Basic approach concerning risk management
The National Federation of Mutual Aid Associations for Municipal Personnel appropriately conducts risk management
related to the investment of funds in light of the following matters.
(i) Investment of funds should be made safely and efficiently from a long-term perspective.
(ii) A benchmark portfolio should be developed and investment of funds should be made based on the benchmark
portfolio through appropriate diversification across multiple asset classes with different risk/return profiles and othercharacteristics (hereinafter referred to as "diversified investment") in principle.
(iii) The Federation shall conduct appropriate risk management, especially paying attention to downside risks in light ofthe characteristics of a closed pension plan which receives no new contribution income, with constant awarenessof the relationship between future liabilities and the fund.

14

4 Risk management

Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)(2) Risk management efforts ①○ Management of the deviation of the asset mix• Investment based on the benchmark portfolio requires the management of various risk factors. Therefore, in order tosecure returns in line with the benchmark portfolio from the long-term perspective, it is important, in particular, to manage
the degree of deviation of the asset mix ratio of the fund from that of the benchmark portfolio.
• Specifically, as the asset mix constantly changes due to asset price fluctuations, the Federation keeps track of the statusof the deviation of the asset mix of the fund from that of the benchmark portfolio and manages the actual portfolio so as tokeep the degree of deviation within a certain range (deviation tolerance). In this way, the Federation checks whether or
not there are problems such as a deviation from the benchmark portfolio in excess of the deviation tolerance.
○ Monitoring of market risk, etc.
• The Federation identifies downside risks by using the value at risk approach, which measures the maximum foreseeable
amount of losses expected under certain conditions, and the simulation of impact on funds in the case of fluctuation ofshare price and interest rate within a certain range (a stress test).
• As it also uses active investment in its investment of funds, the Federation seeks to earn an excess rate of return over thebenchmark by diversifying investment strategies and investment issues within each asset class. Therefore, theFederation monitors the status of market risk (price volatility risk, etc. in each asset market), credit risk (default risk), etc.
with respect to each asset class, mainly from the viewpoint of difference from the benchmark for each asset class.
○ Management of entrusted investment management institutions, etc.
The Federation manages liquidity risk (risk that purchasing and selling assets will become difficult due to a decline intrading volume) from the viewpoint of revising asset allocations (rebalancing) and smooth conversion of assets into cash. In
addition, as the Federation entrusts the operation of some investment-related activities to external institutions, it monitors
the status of management (status of risk management and asset administration) of the institutions to which it entrusts asset
management or asset administration (entrusted investment management institutions and asset administration institutions),from the viewpoint of ensuring the smooth operation.

15

4 Risk management

Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)(2) Risk management efforts ②○Reporting on the status of risk management and improvement measures implemented
The status of risk management and improvement measures implemented are reported to the General Assembly and theFund Management Committee.

16Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

4 Risk management(3) Status of risk management (overall assets)○ Asset mix and estimated tracking error
In fiscal year 2019, the shares in the asset mix concerning all asset classes—domestic bonds, domestic equities, foreign
bonds and foreign equities—stayed within the deviation tolerance. In addition, the estimated tracking error for overall
assets generally stayed stable, but it rose toward the end of the fiscal year due to the effects of market fluctuations
associated with the spread of novel coronavirus infections.
【Changes in the asset mix】

【Changes in the estimated tracking error】

Domestic equities

Domestic bonds

（％）

45%

55%

Deviation tolerance (upper limit: 50%)

3.0

Deviation tolerance (upper limit: 39%)

50%

40%

45%

35%

40%

30%

35%

25%

2.5
2.0
1.5

Benchmark portfolio (35%)

Benchmark portfolio (25%)

30%

20%

25%

15%

20%

1.0
0.5
0.0

10%

15%
Apr

May

Jun

Jul

Aug

Oct

Sep

Nov

Dec

Jan

Feb

Mar

Apr

Deviation tolerance (lower limit: 11%)

Deviation tolerance (lower limit: 20%)Apr

May JunJul

Aug Sep

Oct

Nov Dec

Jan

Feb

35%

Deviation tolerance (upper limit: 37%)

19%
30%
17%

Benchmark portfolio (15%)

Benchmark portfolio (25%)

15%

25%

13%

20%

11%
15%

9%

Deviation tolerance (lower limit: 9%)

7%

10%

Deviation tolerance (lower limit: 13%)

5%

5%
Apr

May

Jun

Jul

Aug

Sep

Oct

Nov Dec

Jan

Feb

Mar

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Estimated tracking error:

40%

Deviation tolerance (upper limit: 21%)
21%

Jun

Mar

Foreign equities

Foreign bonds
23%

May

5%

Apr

May JunJul

Aug Sep

Oct

Nov Dec

Jan

17

Feb

Mar

A benchmark used to estimate the degreeof deviation (standard deviation) of the
future excess return (the difference
between the return for the portfolio and thebenchmark return)Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

5 Stewardship activities(1) Efforts in fiscal year 2019
○ As a part of its stewardship activities for fiscal year 2019, the Federation conducted surveys and hearings for entrusted investment
management institutions in relation to the situations of exercise of shareholders' voting rights and situations of engagement activities.
The Federation encouraged them to engage in stewardship activities in an effective way adapted to their respective investment styles
and resources. In addition, the Federation made periodical reports on its stewardship activities and revision to related rules.
Surveys and hearings of entrusted investment management institutions
Subjects

PeriodSurvey on exercise of voting rights

August 2019

Survey on performance of stewardship
activities

September 2019

Hearing related to the two subjects
mentioned above

October toNovember, 2019

Targets

Main subjects

Entrusted investment management institutions
for domestic and foreign equities(12 companies for domestic equities and 8
companies for foreign equities)

Verification of:results of exercise of voting rights
structure for exercise of voting rights

12 entrusted investment management
institutions for domestic equities

Verification of:structure for managing conflicts of interest
details of engagement
strengthened efforts, challenges and issues
reason for the decision to exercise voting rights in relation
to specific, individual proposals(Note 1) The following twelve companies are entrusted with the investment management of domestic equities: Asset Management One Co., Ltd., Invesco Asset Management (Japan) Limited,
Capital International K.K., Schroder Investment Management (Japan) Limited, Nikko Asset Management Co., Ltd., Nissay Asset Management Corporation, Nomura Asset Management
Co., Ltd., Mizuho Trust & Banking Co., Ltd., Sumitomo Mitsui DS Asset Management Company, Limited, Sumitomo Mitsui Trust Bank, Limited, Mitsubishi UFJ Trust and Banking
Corporation and Resona Bank, Limited(Note 2) The following eight companies are entrusted with the investment management of foreign equities: Wellington Management, MFS Investment Management, State Street Global Advisors,
SEIRYU Asset Management Ltd., Tokio Marine Asset Management Co., Ltd., Natixis Investment Managers, BlackRock Japan Co., Ltd. and Sumitomo Mitsui Trust Bank, Limited

Periodical reports related to stewardship activities
Subjects
Providing information on an as-neededbasis in addition to regular reports at
executive meetings

PeriodTargets

Main subjects

As necessary

Executives of the Federation
Executives and employees of member
associations

Federation's approach to stewardship activities and ESG
investment

Report of the Federation's stewardship
activity in its PR papers

February 2020

Executives and employees of theFederation
Executives and employees of member
associations

Stewardship activity of the Federation

Annual Stewardship Activity Report
FY2019March 2020

Publicized on the Federation's website

•
•

18

Results of monitoring of stewardship activities conducted by
entrusted investment management institutions
Status of exercise of voting rights of shareholders

5 Stewardship activities

Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)(2) Main activities and future initiatives
1. Periodical report○ Annual Stewardship Activity Report FY2019○ Federation’s Newsletter (February issue)

https://ssl.shichousonren.or.jp/fund/stewardship_active.html

2. Points of revision of regulations○ Corporate GovernancePrinciples
Consideration of wide variety of
stakeholders, consideration ofgender and international
background of board members,
establishment of an advisorycommittee, etc.

○ Guidelines on Exercising
Shareholders’ Voting Rights
Requirement of exercising voting
rights and conducting
engagement in an integrated
manner and utilizing the PDCA
cycle, creation or revision of
criteria for exercising voting rights
in relation to some proposals

3. Future initiatives○ Strengthening of information feedback○ Discussion of methods for evaluating entrusted investment
management institutions according to their characteristics
The Federation will continue discussing the methods for monitoring entrusted
investment management institutions’ effective stewardship activities and theappropriate methods for evaluation.

The Federation will publicize information through its website andother means and exercise its efforts to deepen the understanding by
its members (beneficiaries) as to its stewardship activity by suchmeans as PR papers and periodical reports at its general meetings.

○ Revision of regulations○ Gathering wide range of information
The Federation will continue gathering information by such way as meeting withother institutional investors, holding study sessions, participating in seminars
and information exchange with entrusted investment management institutions.
Amid the restricted social and economic activities due to the global COVID-19
pandemic, in anticipation of post-pandemic situations, the Federation will also
consider subjects and methodologies for company research and engagement
as well as expected changes in the desirable image of companies.

19

On March 24, 2020, the second revised version of the Japan's
Stewardship Code was issued by the Financial Services Agency. Inline with this, the Federation will renew its Signup to Japan's
Stewardship Code (November 2017 version) and publicize it.

Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

6 Other major efforts

Administration and evaluation of entrusted investment management institutions, etc.
① Administration and evaluation of entrusted investment management institutions
The Federation requires entrusted investment management institutions to submit monthly reports on investment results and the risk
status and checks the status of compliance with the investment guidelines. The Federation also requires quarterly reports on theportfolio status, a factor breakdown of the excess return, and changes in the organizational structure and investment management
system and conducts administration through measures such as receiving explanations about summary investment results and future
investment policy, among other matters, as necessary at meetings.
The evaluation is conducted with the end of each fiscal year as the reference date based comprehensively on qualitative evaluation(e.g., investment management systems and processes, risk management, and compliance) and quantitative evaluation (the excess
return and tracking error in the case of passive investment and the excess return and the information ratio, among other items, in thecase of active investment). Quantitative evaluation is conducted based on actual results in the past three years and in the past five
years, with the possible effects of the market environment and investment style taken into consideration.
☞ As a result of the comprehensive evaluation conducted with the end of FY2018 as the reference date, one fund was partiallycancelled (reduction).
② Administration and evaluation of asset administration institutions
The Federation requires monthly reports on the asset administration status in order to check the status of compliance with the asset
administration guidelines and conducts administration through measures such as receiving explanations at meetings as necessary.
Qualitative evaluation is conducted with respect to such items as the business operation system and asset administration system.

March

December

September

June

March

【Performance check】◇ Monthly

＊

＊

＊

＊

＊

＊

＊

＊

＊

＊

＊

＊

☆

・・・

【Report on the investment status】◇Quarterly

☆

☆

☆

【Comprehensive evaluation】◇Annual

☆

20

・・・

Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

Section 2 Fund Investment System, etc. of the Federation21

1 Organizational structure

Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

Organizational structure (1)1. Organization
As of April 1 of 2020, the Federation has executives consisting of one president, 13 managing directors and three auditors,
including one full-time managing director and one full-time auditor with academic knowledge. The maximum number of employees is
120.
The organization consists of the General Affairs Department (General Affairs Division, Planning Division, Insurance Division andWelfare Division), the Finance Department (Accounting Division, Investment Planning Division, In-house Investment Division, FundManagement Division and Alternative Fund Management Division), the Pension Department (Pension Planning Division, Pension
Information System Division, Pension Inspection Division, Pension Benefit Division and Retirement Pension Benefit Division), as wellas the Investment Risk Management Office and Audit Office.
The Alternative Fund Management Division of the Finance Department was established as of April 1, 2020 in order to establish
decision-making and administration and management systems independent from systems related to traditional assets following theearnest start of investment in alternative assets.
2. General Assembly
The General Assembly consists of 61 members, 47 of which are elected by mutual vote the Presidents of associations which are
the members of the Federation (hereinafter the "Member Associations"). Among the members of the General Assembly, 14 areelected by mutual vote of the Executive Directors of the Member Associations.
Revision of the articles of incorporation, the formulation and revision of the rules of operations, annual business plans, budgets andaccount settlement, disposal of important assets and assumption of significant debt are subject to resolution of the General Assembly.
3. Fund Management Committee
This is a committee consisting of members who possess academic knowledge or practical experience in areas such as the pension
system, economics, finance and fund management, which studies expert matters pertaining to the establishment and revision ofbasic policies and the administration and investment of the Employees' Pension Insurance Benefit Association Reserve Fund,Annuity Retirement Benefit Association Reserve Fund and Transitional Long-term Benefit Association Reserve Fund (hereinafter the"Funds").
4. Long-term Benefit Fund Committee
This is a committee also participated in by the representatives of Member Associations, which conducts research and study relating
to basic policies for investment of Funds and other important matters.

22

1 Organizational structure

Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

Organizational structure (2)5. Operational Management Committee
This is a committee also participated in by the representatives of Member Associations, which conducts research and monitoring ofbusiness administration and fund management implemented by the Federation and the Member Associations, as well as assessmentof business.
6. Fund Investment Review Council
This is a council for ensuring the safe and effective investment of surplus from business operation of each of the accountings of theFederation, discussing decision-makings as to the investment of funds. This council is constituted by a full-time managing director(hereinafter a “Senior Managing Director”), the Secretary-General, the General Manager of Finance Department, the Chief
Investment Specialist, the Senior Investment Specialist, the Manager of Investment Planning Division, the Manager of In-house
Investment Division, the Manager of Fund Management Division, the Manager of Alternative Fund Management Division, theManager of Investment Risk Management Office, and other members as may be deemed necessary. In principle, the council
regularly meets once a month, and from time to time depending on the necessity.
7. Investment Risk Management Committee
This is a committee to conduct activities such as verification, reporting and discussion so as to ensure appropriate risk management
related to fund investment. This committee is constituted by the Senior Managing Director, the Secretary-General, the General
Manager of Finance Department and other members as may be deemed necessary. In principle, the council regularly meets once amonth, and from time to time as depending on the necessity.

23Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

1 Organizational structure

Organizational structure (3)8. Organizational structure of Federation

As of April 1, 2020

Report of status ofinvestment, risk
management, etc.

Fund Management
Committee(Discussion by financial experts)
Basic policy, benchmark portfolio,risk management, investment
methods, etc.

GeneralAssembly

Long-term Benefit Fund
Committee(Discussion by representatives of Member
Associations, etc.)

Operational Management
Committee

Use of expert
knowledge(Monitoring by certified public accountants, etc.)

Recommendation

President

Auditor
Audits of businesses

Managing
Director

Fund Investment Review Council(Check and discussion by officers andemployees [monthly])
Status of investment, etc.

SecretaryGeneral

Investment Risk
Management Committee

Cooperation(Check and discussion by officers
and employees [monthly])
Risk management, etc.

Audit Office
Investment Risk
Management Office

General Manager ofFinance Department
Chief Investment Specialist

Risk management

Senior Investment Specialist
Investment Planning
Division

In-house Investment
Division

Fund Management
Division

Alternative FundManagement Division

Basic policy, funding plan,benchmark portfolio

In-house investment

Entrusted investment
management

Alternative investment

24

Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

2 Fund Management Committee

Fund Management Committee (1)○ Fund Management Committee
The Federation has established the Fund Management Committee, which is comprised of members who possess academic
knowledge or practical experience in areas such as the pension system, economics, finance and fund management. Members areappointed by the President.
As an advisory body for the President, the Fund Management Committee has a duty to conduct research on basic issues relating tofund management, discuss matters necessary for the achievement of the purpose to contribute to the safe and efficient fundmanagement, and to report the findings to the President. The Committee is also to give advice to the President for any other importantmatters relating to the fund management.
For expert matters relating to the management and investment of Funds, including the adoption and amendment of basic policies forthe management and investment of Funds including benchmark portfolio, deliberation at the Fund Management Committee is required.

List of Committee Members (As of April 2020)
Ohno Sanae

Professor, Faculty of Economics, Musashi University

Kato Yasuyuki

Project Professor, Graduate School of Management, Tokyo Metropolitan University
Adjunct Professor, Graduate School of Management, Kyoto University

Takehara Hitoshi

Professor, Waseda Business School (Graduate School of Business and Finance)

Tokushima Katsuyuki

NLI Research Institute, Head of Pension Research, CMA Financial Research
Department

Toshino Masashi

Professor, Faculty of Economics, Seikei University

Miwa Yumiko

Professor, Faculty of Commerce, Meiji University

25Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

2 Fund Management Committee

Fund Management Committee (2)○ Meetings of the Fund Management Committee (fiscal year 2019)
Meeting
number

43rd

Meeting date

September 18, 2019

Main subjects
•
•
•
•
•

44th

February 27, 2020

•
•
•
•

45th

March 27, 2020

•
•
•
•

Consultation paper
Issues for deliberation in FY2019 and method of discussion
Examination of the benchmark portfolio for the Annuity Retirement Benefit
Association Reserve Fund
Recommendation paper (draft)
Status of investment of pension funds in the first quarter of FY2019
Status of investment of pension funds in the third quarter of FY2019
Status of stewardship activities
Review of the Federation’s benchmark portfolio (first and second tiers)(proposal)
Review of the Federation’s benchmark portfolio (former third tier) (proposal)
Deviation tolerance in the Federation’s benchmark portfolio
Recommendation paper (draft)
Partial revision of basic policy on administration and investment of pension
funds
Safe and effective investment of pension funds26

3 Basic approach to investment

Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

Basic approach to investment○ Basic policy
The Federation shall manage the fund with the objective of contributing to the stability of the transitional long-term benefit (“TLTB”) plan
operations based on the characteristics of a closed-end pension fund that will have no new contribution income, especially paying attention
to downside risks, with constant awareness of the relationship between future liabilities and the fund and from a long-term perspective andin a stable and efficient manner.
In the management of funds, investments shall be made in a way that ensures appropriate diversification across multiple assets withdifferent risk/return profiles and other characteristics.
The investment of the Transitional Long-term Benefit Association Reserve Fund, which has the characteristics of a closed pension plan,
shall be managed appropriately by establishing the benchmark portfolio in order to generate investment returns needed for the reserve fundwith the minimum risk, while fully paying attention to the relationship between future liabilities and the reserve fund. In addition, efforts shallbe made to earn the benchmark return for overall assets and each asset class, as well as generating benchmark returns for overall assets
and each asset class over the long term.

Basic Policy for Management and Investment of Transitional Long-term Benefit Association Reserve Fund (Extract)
1. Basic Policy
The Federation shall manage the TLTB association reserve fund with the objective of contributing to the stability of the TLTB plan
operations based on the characteristics of a closed-end pension fund that will have no new contribution income, especially paying attention
to downside risks, with constant awareness of the relationship between future liabilities and the fund and from a long-term perspective andin a stable and efficient manner.
Accordingly, on the basis of appropriately diversifying investments in multiple assets that differ in risk/return and other characteristics(“diversified investment"), the Federation shall manage and invest the TLTB association reserve fund by establishing an asset mix from thelong-term perspective (the “benchmark portfolio").
2. Investment target
The investment of the TLTB association reserve fund, which has the characteristics of a closed pension plan, shall be managed
appropriately by establishing the benchmark portfolio in order to generate investment returns needed for the fund with the minimum risk,
while fully paying attention to the relationship between future liabilities and the fund.
In doing so, attention shall be paid not to distort, among other things, price formation in the market and private sector investment activities.
In addition, efforts shall be made to earn the benchmark return for overall assets each asset class for each fiscal year, as well as
generating benchmark returns for overall assets and each asset class over the long term.

27

Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

Section 3 Reference Data28

Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

1 Changes in the investment results

Changes in the investment return, etc. (since the integration of employee pension plans)(1) Investment return(2) Value of investment income(Unit: JPY100M)(Unit: %)FY2015(second half)

FY2016FY2017FY2018FY2019Investment
income

560

2,795

3,913

717

-2,842-0.34

Domestic
bonds

1,198

-141

234

328

-68

-5.26

-9.00

Domestic
equities

-444

1,800

2,317

-828

-1,286

3.65

2.62

4.07

-119

-314

238

212

350

14.34

9.57

7.82

-13.33

-75

1,449

1,125

1,005

-1,838

0.01

0.00

0.00

0.00

1

0

0

0

0

FY2015(second half)

FY2016FY2017FY2018FY2019Modified total
return

0.97

4.90

6.81

1.22

-4.97

Domestic
bonds

3.80

-0.52

0.96

1.55

Domestic
equities

-4.50

14.94

16.32

-2.21

-5.19

-0.93
0.02

Foreignbonds
Foreignequities
Short-term
assetsForeignbonds
Foreignequities
Short-term
assets(Unit: JPY100M)(Unit: %)Realized return

FY2015(second half)

FY2016FY2017FY2018FY2019

2.15

2.59

5.09

3.57

2.94

FY2015(second half)

FY2016FY2017FY2018FY2019Realized income

1,085

1,305

2,508

1,756

1,431

(Income gain)(522)(1,078)(1,360)(1,176)(1,149)(Note 1) The investment return for fiscal year 2015 is the period rate for the second half of fiscal year 2015.
(Note 2) The investment income for fiscal year 2015 is the aggregate amount of investment income for the second half of fiscal year 2015.
(Note 3) Income gains comprise interest and dividend income.

29

Transitional Long-term Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

2 Issues held

Issues held
The tables below show the top 10 bond and equity issues held indirectly through entrusted investment, through in-house investment,
and indirectly through depositing with member associations as of the end of March 2020, with bond issues classified by issuer name andequity issues by issue name. For information concerning bond and equity issues ranked 11th or lower, see the website of the Federation.
The status of holding of issues does not represent the assessment of investees by the Federation.

○ Domestic bond (in order of total market value)No.

Names of issuer

1
Government of Japan
2
Japan Finance Organization for Municipalities
3
Hyogo Prefecture
4
Kanagawa Prefecture
Japan Expressway Holding and Debt Repayment Agency
5
6
Yokohama City
7
Osaka City
8
Fukuoka Prefecture
9
Shizuoka Prefecture
10 Aichi Prefecture
Total
461 Issuers○ Domestic equity (in order of total market value)
Total market
value(in 100M yen)
5,352
4,920
557
474
402
390
352
340
322
311
19,530No.

1
Toyota Motor Corporation
2
Sony Corporation
Nippon Telegraph and Telephone Corporation
3
4
Keyence Corporation
5
Mitsubishi UFJ Financial Group
6
SoftBank Group7
KDDI Corporation
8
Takeda Pharmaceutical Company Limited
9
Sumitomo Mitsui Financial Group
10 NTT DOCOMO, INC.
2,192 Issues
Total○ Foreign bond (in order of total market value)No.

Names of issuer

1
UNITED STATES TREASURY
2
FRANCE (GOVERNMENT)3
ITALY, REPUBLIC OF (GOVERNMENT)UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND
4
5
GERMANY (GOVERNMENT OF)
6
SPAIN, KINGDOM OF (GOVERNMENT)
7
BELGIUM, KINGDOM OF (GOVERNMENT)8
FEDERAL NATIONAL MORTGAGE ASSOCIATION
9CANADA (GOVERNMENT)
10 AUSTRALIA, COMMONWEALTH OF (GOVERNMENT)
Total
604 Issuers

Issue names

No. of shares
6,034,100
3,360,200
8,094,600
508,100
39,197,200
4,143,400
4,742,700
4,199,300
4,786,300
3,724,100

Total market
value(in 100M yen)
400
217
212
177
163
158
154
143
130
128
12,294○ Foreign equity (in order of total market value)
Total market
value(in 100M yen)
3,900
744
714
494
489
462
181
159
157
135
8,858

No.

Issue names

1
MICROSOFT CORPORATION
2APPLE INC
3
AMAZON COM INC
4FACEBOOK INC-A
5
NESTLE SA (REGISTERED)
6
ALPHABET INC-CL A
7
ALIBABA GROUP HOLDING
8
ALPHABET INC-CL C
9
VISA INC-CLASS A SHRS
10 JOHNSON AND JOHNSON
2,883 Issues
Total

No. of shares
1,904,065
1,150,248
112,925
690,298
1,085,056
94,639517,684
84,894
600,539
703,374

Total market
value(in 100M yen)
324
316
238
124
120
119
109
107
104
100
11,584(Note 1) The names of issuers and issues are provided by the Federation based on data registered in the T-STAR/GX system of Nomura Research Institute and BarraOne system of MSCI asof the end of March 2020.
(Note 2) The total market value of bonds is an aggregated figure calculated for each issuer by the Federation based on data registered in T-STAR/GX system of Nomura Research Institute.
(Note 3) The names of issuers and issues may be different from those on the list of all issues held published separately on the website.

30