Fiscal Year 2022 Review of Operations
Employees' Pension Insurance 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

Employees' Pension Insurance 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 FY2022】
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 Benchmark portfolio…………………………………………………………………………………………………………………. 13
4 Risk management(1) Approach to risk management………………………………………………………………………………………………… 14(2) Risk management efforts……………………………………………………………………………………………………… 15(3) Status of risk management (overall assets) ………………………………………………………………………………… 16
5 Investment in alternative assets…………………………………………………………………………………………………… 17
6 Stewardship activities……………………………………………………………………………………………………………….. 22
7 Other major efforts…………………………………………………………………………………………………………………... 24【Section 2 Businesses and Fund Investment of the Federation】
1 Organizational structure…………………………………………………………………………………………………………….. 26
2 Fund Management Committee…………………………………………………………………………………………………….. 29
3 Basic approach to investment……………………………………………………………………………………………………… 31【Section 3 Reference Data】
1 Changes in the investment results………………………………………………………………………………………………… 33
2 Issues held…………………………………………………………………………………………………………………………… 34
2

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

Investment Results (Overview)

Investment return+1.65%

Time-weighted return (market value basis)(FY2022)(Investment return before the deduction of fees, etc.)

Investment income+JPY 102.4 billion

Investment income (market value basis)(FY2022)

Value of investment assets:

JPY 6,324.9 billion

Total market value(End of FY2022)
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 1) The investment income represents the income after the deduction of fees, etc.

3

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

Section 1 Administration and Investment of Funds in FY2022

4

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

1 Market environment

Change in benchmark return
Regarding the full-year benchmark return, while both the bond and stock markets declined as a result of a series ofinterest rate hikes by central banks amid rising inflation rates worldwide, the markets recovered in the second half of the
fiscal year because of the post-COVID-19 economic normalization and expectations for a halt to the round of interest
rate hikes in the United States. As a result, the total return came to +1.57%.
Domestic equities

Domestic bonds

Foreign bonds

Foreign equities

Mar. 312022

Apr. 30
2022

May. 312022

Jun. 30
2022

Jul. 312022

Aug. 312022

Sep. 302022

Oct. 312022

Nov. 30
2022

Dec. 312022

Jan. 312023

Feb. 28
2023

Mar. 312023(Note) The level as of March 31, 2022 is the base figure of 100.
Returns
Asset class

Benchmark
Q1

Q2

Q3

Q4

Domestic bonds NOMURA Bond Performance Index (Overall)-1.30%-0.66%-1.88%

2.22%

Domestic equities TOPIX (dividend-inclusive)-3.65%-0.79%

3.26%

7.21%

5.81%

2.66%

-1.78%-5.81%

4.69%-0.56%-5.51%-0.55%-0.01%

8.44%

1.88%

-1.96%-0.89%-1.05%

5.64%

1.57%

Foreign bonds
Foreign equities

FTSE World Government Bond Index(ex-Japan, ex-China, no hedge, in yen)

MSCI ACWI ex. Japan(in yen, dividend-inclusive)

Total

Full fiscal year

-1.65%(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)

Employees' Pension Insurance 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: %)End of
FY2021

Domestic bonds

26.8

FY2022End of Q1

End of Q2

End of Q3

End of Q4(End of FY)

23.3

26.4

24.2

27.0

Benchmarkportfolio

25.0

Short-term
assets

(6.8)

(1.7)

(5.5)

(2.3)

(6.6)

Domestic
equities

25.1

26.2

25.3

27.0

25.9

25.0

Foreign bonds

22.1

25.0

24.1

23.6

22.3

25.0

Foreign equities

25.9

25.6

24.2

25.2

24.8

25.0

Total

100.0

100.0

100.0

100.0

100.0

100.0

(Note 1) Deviation tolerances from the benchmark portfolio are ±20% for domestic bonds, ±12% for domestic equities, ±9% for foreign bonds and ±11% for foreign
equities.
(Note 2) Due to rounding, the total sum of individual figures may not necessarily add up to 100%.
(Note 3) Short-term assets held by each fund were classified into relevant asset classes in principle.
(Note 4) The ratio of alternative assets to the total amount of funds is 2.1% (the upper limit for the benchmark portfolio is 5%).

6

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

2 Investment results(2) Investment return
The time-weighted return for FY2022 was 1.65% for the overall assets.

Changes in time-weighted return(Unit: %)FY2022
Q1

Q2

Q3

Q4

FY totalTime-weighted returns

-1.77

-0.64

-0.94

5.14

1.65

Domestic bonds

-1.08

-0.69

-1.54

1.58

-1.75

Short-term assets(0.00)(0.00)(0.00)(0.00)(0.00)

Domestic equities

-3.65

-0.40

3.05

6.89

5.70

Foreign bonds

3.55

-0.96

-5.59

3.99

0.68

Foreign equities

-5.29

-0.49

0.18

8.18

2.14
(Unit: %)FY2022Modified total return

Q1

Q2

Q3

Q4

-1.80

-0.57

-0.90

5.05

FY total

1.65(Unit: %)FY2022

Realized return

Q1

Q2

Q3

1.56

1.33

0.83

Q4

0.90

FY total

4.59(Note 1) The return in each quarter is the period rate.
(Note 2) The time-weighted return represents the figure before the deduction of fees, etc.
(Note 3) The modified total return and realized return represent the figures after the deduction of fees, etc.

7Time-weighted return by asset(aggregate for the fiscal year)Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

2 Investment results(3) Contribution analysis of excess return (i)The time-weighted return for overall investment assets was 1.65%, while the excess return compared with the benchmark
return was 0.08%.
The excess return for overall assets (0.08%) can be broken down as follows: asset allocation factor: 0.07%; individual asset
factor: 0.32%; composite factor: -0.31%.
FY2022 (April 2022 through March 2023)
OverallassetsModified total return
Benchmark return
Excess return*(Unit: %)Domestic Domestic Foreignbonds
equities
bonds

Foreignequities

1.65

-1.75

5.70

0.68

2.14

1.57

-1.65

5.81

-0.56

1.88

0.08

-0.10

-0.12

1.24

0.26

* 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
factorIndividual asset
factorComposite factor

Domestic bonds-0.00%-0.03%-0.07%

Domestic equities

0.03%-0.03%-0.07%

Domestic bonds

Foreign bonds

0.04%

0.31%

-0.09%

Foreign equities

0.00%

0.06%

-0.07%

Total

0.07%

0.32%

-0.31%(Reference) Deviation of the Federation's portfolio (book value average balance +accrued income as of the end of previous period + valuation gains/losses as of theend of previous period) from the benchmark portfolio

Federation's
portfolio

Benchmarkportfolio

Deviation

Deviation
tolerance

25.1%

25.0%

0.1%

±20%

Domestic equities

25.7%

25.0%

0.7%

±12%

Foreign bonds

22.9%

25.0%

-2.1%

±9%

Foreign equities

26.3%

25.0%

1.3%

±11%

Total

100.0%

100.0%

0.0%

Asset allocation factor: A factor that is attributable to the difference between the asset mix of the fund and the benchmark portfolio.
Individual asset factor: A factor that is attributable to the difference between the time-weighted return and benchmark return concerning each asset class.
Composite factor: A factor combining elements of the asset allocation and individual asset factors and calculation errors.

8

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

2 Investment results(3) Contribution analysis of excess return (ii)
○ Domestic bonds
The time-weighted return of domestic bonds was -1.75%, which was below the benchmark return (-1.65%) by 0.10%.
In passive investment, as the overweighting of municipal bonds was tolerated, the expansion of the yield spread between municipal
and government bonds had a negative impact. In active investment, the performance varied across entrusted investment management
institutions, but on a combined basis, the returns of the eight entrusted investment management institutions were similar to thebenchmark. Currency-hedged foreign bond funds, which are classified as domestic bonds, made negative contributions against the
backdrop of increased hedging cost, and as a result, the return on domestic bonds as a whole fell short of the benchmark.
○ Domestic equities
The time-weighted return of domestic equities was 5.70%, which was below the benchmark return (5.81%) by 0.12%.
In passive investment, the return was similar to the benchmark. In active investment, value funds generally performed well, but growthfunds and the performance of small- and mid-cap funds was poor. Regarding funds adopting smart beta strategies, the manager’s
benchmark return (5.11%) was lower than the return on the TOPIX index for those using a low-volatility strategy. As a result, the returnon domestic equities as a whole was lower than the benchmark.
○ Foreign bonds
The time-weighted return of foreign bonds was 0.68%, which exceeds the benchmark return (-0.56%) by 1.24%.
In passive investment, the return was generally similar to the benchmark. In active investment, only two of the eight entrusted
investment management institutions delivered a return higher than the manager’s benchmark. As the return on the Bloomberg Global
Aggregate Index (1.14%), which was adopted as the manager’s benchmark by five of the eight institutions, was much higher than thebenchmark (WGBI), the returns for all of the five exceeded the return on the WGBI. As a result, the return on foreign bonds as a whole
exceeded the benchmark. Alternative asset funds, classified as foreign bonds, also contributed to the excess return.
○ Foreign equities
The time-weighted return of foreign equities was 2.14%, which exceeds the benchmark return (1.88%) by 0.26%.
In passive investment, the return fell slightly short of the benchmark due to the effects of dividend taxation. In active investment, some
growth funds performed poorly. However, focused funds that invest in a limited number of issues and funds that make investment inways that curb portfolio volatility performed well. As a result, an excess return was secured for active investments as a whole, and thereturn on foreign equities as a whole also exceeded the benchmark.

9

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

2 Investment results(4) Investment income
The investment income for FY2022 was JPY 102.4 billion for overall assets.

Changes in investment income(Unit: JPY100M)

FY2022
Q1

Q2

Q3

Q4

FY total

Investment income-1,103

-343

-535

3,005

1,024

Domestic bonds

-170

-100

-221

249

-241

Short-term assets

(0)

(0)

(0)

(0)

(0)

Domestic equities

-581

-58

463

1,054

878

Foreign bonds

499

-140

-805

532

85

Foreign equities

-851

-45

29

1,170

303

(Unit: JPY100M)

FY2022
Q1
Realized income

764

Q2

658

Q3

418

Q4

FY total

459

2,299

(Note 1) The total return and realized return represent the figures after the deduction of fees, etc.
(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) Due to rounding, the total sum of individual figures may not necessarily add up to FY total.

10

Total investment income by asset(aggregate for the fiscal year)Employees' Pension Insurance 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)

FY2022End of FY2021
End of Q1
Book value

Total market
value

Valuation
gains/losses

Book value

Total market
value

End of Q2
Valuation
gains/losses

Book value

Total market
value

End of Q3
Valuation
gains/losses

Book value

Total market
value

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

Book value

Total market
value

Valuation
gains/losses

Domestic
bonds

17,032 17,073

41 13,614 13,570-44 15,929 15,782-148 14,314 13,949-364 17,178 17,056-122

Short-term
assets(4,328) (4,328)

(0)

(989)

(0) (3,289) (3,289)(0) (1,337) (1,337)(0) (4,183) (4,183)(0)Domestic
equities

12,222 15,961

3,739 12,221 15,280

3,059 12,205 15,122

2,917 12,451 15,536

3,085 12,550 16,395

3,845

Foreignbonds

13,464 14,074

610 13,531 14,571

1,040 13,642 14,395

753 13,784 13,589-195 13,981 14,131

150

Foreignequities

8,706 16,482

Total

51,424 63,590 12,167 47,912 58,364 10,452 50,213 59,794

7,776

(989)

8,547 14,942

6,396

8,437 14,495

6,059

8,521 14,489

9,581 49,070 57,564

5,968

8,649 15,668

7,019

8,494 52,357 63,249 10,892(Note 1) Due to rounding, the total sum of individual figures may not necessarily add up to Total.
(Note 2) Short-term assets held by each fund were classified into relevant asset classes in principle.

The amounts of funds allocated and withdrawn in FY2022 by asset class are as follows.
(Unit: JPY100M)

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

369

-445

-27

Foreign equities-1,117(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

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

2 Investment results(6) Fees
The amount of fees totaled JPY4.3 billion in FY2022.
The fee rate relative to the value of investment assets came to 0.07%.
(Unit: JPY100M, %)FY2022Fees

Fee rate

Domestic bonds

6

0.05

Domestic equities

12

0.07

Foreign bonds

6

0.05

Foreign equities

14

0.09

Alternative assets

5

0.38

Overall assets

43

0.07

(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 balance(Note 4) In the above table, the figures for alternative assets are separately indicated.

12

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

3 Benchmark portfolio

Benchmark portfolio
1. Benchmark portfolio
Domestic bonds

Domestic equities

Foreign bonds

Foreign equities

Asset mix

25%

25%

25%

25%

Deviation tolerance

±20%

±12%

±9%

±11%

13

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

4 Risk management(1) Approach to risk management○ Generally speaking, "risk" refers to danger or possibility of negative impact. In the field of asset investment, risk means
uncertainty of returns, etc. associated with market volatility or other factors. ("Uncertainties of returns, etc." refers to therisk 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)
1. Basic approach concerning risk management
The National Federation of Mutual Aid Associations for Municipal Personnel appropriately conducts risk management related to theinvestment of funds in light of the following matters.
(1) Investment of funds should be made safely and efficiently from a long-term perspective.
(2) A benchmark portfolio should be developed and investment of funds should be made based on the benchmark portfolio throughappropriate diversification across multiple asset classes with different risk/return profiles and other characteristics (hereinafter referred
to as "diversified investment") in principle.
3. Method of risk management(2) Matters unique to each reserve fund
1. Employees' Pension Insurance Benefit Association Reserve Fund
A. For the basic portfolio, the Federation shall identify the probability of falling below the nominal wage growth rate (hereinafter referred
to as "Lower Partial Probability") and the average shortfall rate when falling below the nominal wage growth rate (hereinafter referred
to as the "Conditional Average Shortage Rate") at least once a year and manage them appropriately.

14

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

4 Risk management(2) Risk management efforts○ 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.
○ 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.
15

Employees' Pension Insurance 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
The asset-by-asset share in the asset mix stayed mostly at around the median value for all asset classes. The
estimated tracking error concerning overall assets ranged from around 0.3% to 0.6%.
【Changes in the asset mix】

【Changes in the estimated tracking error】

Estimated tracking error:
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)16

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

5 Investment in alternative assets

Investment in alternative assets (1)For the purpose of ensuring safe and efficient investment management of the Employees' Pension Insurance Benefit
Association Reserve Fund from a long-term perspective, the Federation started investment in alternative assets in FY2018 inorder to promote diversified investment.
Investment policy pertaining to diversification of eligible investment instruments (investment in alternative assets) (Excerpt)1.

Definition of diversification of eligible investment instruments(1) Definition of diversification of eligible investment instruments
Diversification of eligible investment instruments means making investments in assets whose characteristics, such as the risk/return profiles, are different fromthose of traditional assets such as equities and bonds (hereinafter referred to as "alternative assets").
(2) Scope of alternative assets
Alternative assets are assets such as real estate, infrastructure and private equities, and negotiable securities, trust beneficiary rights and other assets backed
by those assets.

2.

Purpose of diversification of eligible investment instruments
Diversification is used to promote diversified investment of the Employees' Pension Insurance Benefit Association Reserve Fund for the purpose of investing thefunds safely and efficiently from a long-term perspective.

3.

Classification of alternative assets in the benchmark portfolio(1) Classification of alternative assets in the benchmark portfolio
Alternative assets are classified into domestic bonds, domestic equities, foreign bonds or foreign equities according to their risk/return profiles and othercharacteristics.
(2) Share of alternative assets in the asset mix of the portfolio
The share of alternative assets in the asset mix is limited to a maximum of 5% of the overall assets of the Employees' Pension Insurance Benefit Association
Reserve Fund.

4.

Matters to note when diversifying eligible investment instruments
The National Federation of Mutual Aid Associations for Municipal Personnel (hereinafter referred to as the "Federation") takes note of the following matters when
diversifying eligible investment instruments.
(1) In principle, investment shall be diversified between traditional assets, such as equities and bonds, and alternative assets and across different types of alternative
assets.
(2) Diversification shall made after the effects of diversified investment have been recognized and sufficient evidence to support the expectation that excess returns
can be obtained has been obtained.
(3) Because alternative assets are different from traditional assets in many points, such as marketability, profitability, individuality, transaction cost, and information
disclosure status, the Federation shall conduct a study with due consideration of the development of the market environment, including the steady improvementof the earning capacity of each asset and the development of the secondary market.
(4) The Federation shall make alternative investment after developing the investment and risk management systems necessary for the investment (including hiring
personnel with advanced expert skills).
(5) The Federation shall use the expert knowledge of the Fund Management Committee.

17

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

5 Investment in alternative assets

Investment in alternative assets (2)(1) Invitation of public applications for entrusted investment management institutions through Asset Manager Registration
SystemThe Federation started accepting entries with respect to products investing in real estate from fiscal year 2017 andproducts investing in infrastructure and private equity from fiscal year 2018.
(Reference)
Asset class

Main investment
targets

Main income source and characteristics

Real estate

Real estate

Stable rent income earned from invested real estates

Infrastructure

Infrastructure operatingcompanies

Stable business income earned from investee companies and projects

Private equity

Unlisted stocks

Rise in corporate value due to medium- to long-term investments incompanies with high growth potential(2) Adoption of entrusted investment management institutions
In FY2022, the Federation adopted the following entrusted investment management institution for one private equity
fund.
 Mitsubishi UFJ Trust and Banking Corporation (domestic PE)

18

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

5 Investment in alternative assets

Investment in alternative assets (3)(3) Status of investments○

Domestic real estate investments (included in domestic bonds)
Entrusted investment management institutions

Nomura Asset Management

Sumitomo Mitsui Trust Bank○

Outline of investment funds
Diversified investment in sectors such as industrial facilities, rental
houses, offices, and commercial facilities mainly in the three major
metropolitan areas
Diversified investment in privately placed REITs and privately
placed funds investing mainly in domestic offices, industrial
facilities, rental houses and commercial facilities (SMA)

Total market
Timevalue
Starting date of weighted(End of theinvestment
returnfiscal year)(Fiscal year)¥3.3 billion December 2018

7.68%

¥5.5 billion

4.47%

January 2022

Foreign real estate investments (included in foreign bonds)
Entrusted investment management institutions

Outline of investment funds

Total market
Timevalue
Starting date of weighted(End of theinvestment
returnfiscal year)(Fiscal year)

Tokio Marine Asset Management

Diversified investment in real estate funds investing mainly inindustrial facilities, offices, rental houses, commercial facilities, etc. ¥67.6 billion December 2018at a global level (excluding Japan)

13.91%PGIM Japan

Diversified investment in U.S. industrial facilities, rental houses,
offices and commercial facilities

15.89%

19¥24.5 billion December 2018

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

5 Investment in alternative assets

Investment in alternative assets (4)○ Foreign infrastructure investment (included in foreign bonds)

Entrusted investment management institutions

Outline of investment funds

Total market
Timevalue
Starting date of weighted(End of theinvestment
returnfiscal year)(Fiscal year)

J.P. Morgan Asset Management

Diversified investment in infrastructure assets centered on stably
operating assets at a global level¥12.9 billion February 2020

14.62%

Tokio Marine Asset Management(Fund of funds manager:
BlackRock Financial Management, Inc.)

Diversified investment in infrastructure assets centered on stably
operating assets at a global level¥6.7 billion

33.96%

20

March 2020

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

5 Investment in alternative assets

Investment in alternative assets (5)○ Domestic private equity investment (included in domestic equities)
Entrusted investment management institutions

Outline of investment funds

Mitsubishi UFJ Trust and Banking Corporation

Diversified investment in domestic PE funds centered on buy-outs(SMA)

Total market
Timevalue
Starting date of weighted(End of theinvestment
returnfiscal year)(Fiscal year)¥0.5 billion November 2022

-4.61%○ Foreign private equity investment (included in foreign equities)
Entrusted investment management institutions
J.P. Morgan Asset Management(Fund of funds manager:
J.P. Morgan Investment Management Inc.)
Nomura Asset Management(Fund of funds manager:
HarbourVest Partners, LLC)

Outline of investment funds

Total market
Timevalue
Starting date of weighted(End of theinvestment
returnfiscal year)(Fiscal year)

Diversified investment in PE funds centered on buy-outs at a global
level (SMA)¥3.9 billion

March 2021

11.35%

Diversified investment in PE funds centered on buy-outs at a global
level (SMA)¥6.0 billion

March 2021

9.96%

(Note 1) Foreign investment funds were affected by changes in market price valuation due to foreign exchange fluctuations.
(Note 2) The above table covers only items for which entrusted investment management institutions consented to disclosure.
(Note 3) The investment start date is the date of signing the discretionary investment contract.
(Note 4) One trait of PE investment is that, as expenditures accrue without any return being earned for several years after the start of investment, the return remains negative until the value of investee companies rise.
(Note 5) SMA (Separately Managed Account) refers to a dedicated account for managing multiple funds as a whole based on the investor's own investment policy.

21

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

6 Stewardship activities(1) Efforts in FY2022○ As part of its stewardship activity in FY2022, the Federation conducted surveys and interviews with investment management
institutions entrusted with domestic and foreign equity investment regarding the status of their exercise of shareholders’voting rights and engagement and encouraged them to conduct efficient stewardship activity in accordance with their own
investment styles and staffing situations.
Surveys and hearings of entrusted investment management institutions
Subjects

PeriodSurvey on exercise of voting rights

September
2022

Survey on performance of
stewardship activities

September
2022

Interviews regarding the above two
items

November2022

Targets

12 companies for domestic equities
and 8 companies for foreign equities

Main subjects••

results of exercise of voting rights
structure for exercise of voting rights

•
•
•
•

structure for managing conflicts of interest
details of engagement
strengthened efforts, challenges and issues
reason for the decision to exercise voting rights inrelation 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

PeriodTargets

Main subjects

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

February 2023

Executives and employees of the Federation
Executives and employees of member
associations

Federation's approach to stewardship activities

Providing information on an as-neededbasis in addition to regular reports at
executive meetings

As necessary

Executives of the Federation
Executives and employees of member
associations

Federation's approach to stewardship activities and ESG
investment

FY2022 stewardship
activity report

March 2023

Publicized on the Federation's website

•
•

22

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

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

6 Stewardship activities(2) Future initiatives○ Discussion of methods for evaluating entrusted investment
management institutions according to their characteristics○ Gathering wide range of information
The Federation will continue gathering information through activities suchas meetings with a broad range of institutional investors, participation inseminars featuring outside experts as instructors and informationexchange with entrusted investment management institutions. Regarding
assets other than domestic and foreign equities as well, the Federation
has already held seminars with fund managers, analysts, etc. on themes
such as the ESG approach concerning bonds, and the status of ESG
efforts by Japanese companies as viewed from abroad. Going forward,
the Federation will enhance its knowledge in the ESG field by gathering
information from farther and wider than before with respect to ways ofreflecting the ESG factors into investment, techniques for efficientmeasurement of the effects of ESG investment, and points of discussion
regarding product evaluation.

The Federation believes that it is necessary to evaluate stewardship
activity with due consideration given to the differences across entrusted
investment management institutions in the business model and productlineup. The Federation will continue discussing the methods formonitoring entrusted investment management institutions’ effective
stewardship activities and the appropriate methods for evaluation.

○ Strengthening of information feedback
The Federation has been making efforts by such means as PR papers
and periodical reports at its general meetings, in addition to publicizing
information through its website and other means. The Federation will
exercise further efforts to deepen the understanding by its members(beneficiaries) as to its stewardship activity based on discussion for
updates and more in-depth information.

<Reference material> Contents of FY2022 periodical report○ Annual Stewardship Activity Report FY2022○ Federation’s Newsletter (February issue)

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

23

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

7 Other major efforts

Administration and evaluation of entrusted investment management institutions, etc. (traditional assets)
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.
☞ Three funds were partially cancelled (reduction) in the comprehensive evaluation whose base date is at the end of FY2021.
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

June

September

March

December【Performance check】◇

Monthly

＊

＊

＊

＊

＊

＊

＊

＊

＊

＊

＊

【Report on the investment status】◇Quarterly

☆

☆

☆

【Comprehensive evaluation】◇Annual

☆

24

☆

…

＊

…

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

Section 2 Businesses and Fund Investment of the Federation

25

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

1 Organizational structure

Organizational structure (1)1. Organization
As of April 1, 2023, it is required that 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 126.
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 IT and Information Security Office, Investment Risk Management Office and Audit Office.
2. General Assembly
The General Assembly consists of 61 members, 47 of which are elected by mutual vote of the Presidents of associations which are
the members of the Federation (hereinafter the "Member Associations"). Among the members of the General Assembly, 14 are electedby 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 of basic
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 tobasic policies for investment of Funds and other important matters.
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.

26

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

1 Organizational structure

Organizational structure (2)6. Fund Investment Review Council
This is a council for ensuring the safe and effective investment of surplus from business operation of each of theaccountings of the Federation, discussing decision-makings as to the investment of funds. This council is constituted by afull-time managing director (hereinafter a "Senior Managing Director"), the Secretary-General, the General Manager ofFinance 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, the Manager 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 thenecessity.
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 SecretaryGeneral, the Manager of Investment Risk Management Office, the General Manager of Finance Department and othermembers as may be deemed necessary. In principle, the council regularly meets once a month, and from time to timedepending on the necessity.

27

Employees' Pension Insurance 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, 2023

Report of status of investment,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(Monitoring by certified public accountants, etc.)

Use of expert
knowledge

Recommendation

President

Auditor
Audits of businesses

Managing
Director

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

SecretaryGeneral

Investment Risk
Management Committee

Cooperation(Check and discussion by executives
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 concerning
bonds and equities

Entrusted investment concerning
alternative assets

28

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

2 Fund Management Committee

Fund Management Committee (1)○ Fund Management Committee
A Fund Management Committee is established within the Federation. The Committee shall comprise of members who possess
academic knowledge or practical experience in areas such as the pension system, economics, finance and fund management.
Members are appointed 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 Fund Management Committee Members (As of April 2023)

Chairperson

Ohno Sanae

Vice President, Musashi University

Kato Yasuyuki

Professor, Business School, Kyoto University of Advanced Science
Adjunct Professor, Kyoto University
Specially Appointed Professor, Tokyo Metropolitan University

Takehara Hitoshi

Professor, Waseda Business School (Graduate School of Business andFinance)

Tokushima Katsuyuki

Toshino Masashi
Miwa Yumiko

NLI Research Institute
Director, Member of the Board, Head of Pension Research, CMA
Financial Research Department
Specially Appointed Professor, Faculty of Business Administration , Seikei
University
Professor, Faculty of Commerce, Meiji University(Note) In Japanese alphabetical order, honorifics omitted.

29

Employees' Pension Insurance 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 (FY2022)
Meeting
numberMeeting date

Main subjects
•
•
•

52nd

June 16, 2022
(Web conference)

•
•
•
•
•

53rd

54th

November 28, 2022
(Web conference)

March 23, 2023

Consultation paper
Subjects to be discussed this year and how to proceed with themExamination of the benchmark portfolio for the Employees' Pension Insurance
Benefit Association Reserve Fund
Examination of the benchmark portfolio for the Transitional Long-term Benefit
Association Reserve Fund
Recommendation paper (draft)
Status of investment of pension funds
Effect of the Russia-Ukraine situation and status of investment, etc.

•
•
•
•

Examination of the benchmark portfolio for the Annuity Retirement Benefit
Association Reserve Fund
Recommendation paper (draft)
Status of investment of pension funds
Status of investment of domestic bonds
Status of investment in alternative assets•••

Investment of pension funds in FY2023
Status of investment of pension funds
Stewardship activities

30

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

3 Basic approach to investment

Basic approach to investment○Basic policy
The Federation shall make investments for the purpose of contributing to the stable management of the Employees Pension Insurance ("EPI")
scheme operations in the future, from a long-term perspective and in a stable and efficient manner for the benefit of the insured persons of the
EPI.
In the management of funds, investments shall be made in a way that ensures appropriate diversification across multiple assets with different
risk/return profiles and other characteristics.
In addition, in order to ensure investment returns which are set as the investment targets of managed funds provided in Article 79-6,
Paragraph (1) of the Employees' Pension Insurance Act, a benchmark portfolio shall be set and appropriately managed, and efforts shall bemade to earn the benchmark return for overall assets and each asset class, as well as generating benchmark returns for overall assets andeach asset class over the long term.

Basic Policy for Management and Investment of Employees' Pension Insurance Benefit Association Reserve Fund (Extract)
1. Basic Policy
Especially keeping in mind that the Employees' Pension Insurance Benefit Association Reserve Fund is part of insurance premiums collectedfrom insured persons of the EPI and valuable resources for funding future pension benefits, the funds shall be managed with the objective ofcontributing to the stable operation of EPI schemes in the future by investing it safely and efficiently "solely for" ("for" in the case of investing in linewith the objectives of the Act under Article 79-3, Paragraph (3), of the EPI Act) the interests of insured persons of the EPI from the long-term
perspective.
Accordingly, the Employees' Pension Insurance Benefit Association Reserve Fund shall be managed and invested with an asset mix establishedfrom the long-term perspective (the "benchmark portfolio") based on appropriately diversifying investments in multiple assets that differ inrisk/return and other characteristics ("diversified investment").
2. Investment target
Investment of the Employees' Pension Insurance Benefit Association Reserve Fund shall be managed appropriately by establishing a Benchmark
Portfolio, so as to secure investment returns targeted for managed funds provided in Article 79-6, Paragraph (1) of the EPI Act (the "managed
funds").
In doing so, attention shall be paid not to distort price formation in the market and private sector investment activities.
In addition, efforts shall be made to secure benchmark returns for overall assets and each asset class in each fiscal year by appropriately
selecting, managing and assessing entrusted investment management institutions, as well as securing benchmark returns for overall assets andeach asset class over the long term.

31

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

Section 3 Reference Data

32

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

1 Changes in the investment results

Changes in the investment return and investment income (since the integration of employee pension plans)
1. Investment return

2. Value of investment income(Unit: JPY100M)(Unit: %)FY 2015(second half)
ReturnDomestic
bonds
Short-term
assetsDomestic
equities
Foreignbonds
Foreignequities

0.89

FY2016
4.16

FY2017
6.40

FY20181.59

FY2019-4.60

FY202023.55

FY2021
5.62-2,506

11,774

3,440

1,024

984

-188

248

364

23

-23

-147

-241

-1.75

-0.03

0.00

0.00

0.00

0.00

(0.00)(0.00)(0.00)

-2.32
-1.04

-5.23

3.47

2.64

3.88

6.17

3.27

FY2022

879

-0.96

1.80

FY2021

3,429

-0.13

41.97

FY2020

2,150

0.13

-9.58

FY2019

473

1.94

-5.24

FY2018Domestic
bonds

1.25

15.85

FY2017

1.65

-0.79

14.76

FY2016

Investment
income

3.32

-3.98

FY 2015(second half)

FY2022

Short-term
assets

-1

0

0

0

0

(0)

(0)

(0)

5.70

Domestic
equities

-330

1,331

1,836

-702

-1,205

4,801

290

878

0.68

Foreign
bonds

-105

-320

247

204

304

606

446

85

Foreignequities

-75

1,327

1,098

1,013

-1,629

6,391

2,850

303

14.43

9.34

7.82

-12.35

59.17

17.63

2.14

FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022(Unit: JPY100M)(Unit: %)FY 2015(second half)
Realized return

2.29

2.24

4.37

2.96

2.98

3.62

6.91

4.59

FY 2015(second half)

FY2016FY2017FY2018FY2019FY2020

FY2021

Realized income

1,111

1,066

2,112

1,436

1,442

1,734

3,391

2,299

(Income gain)

(349)

(820)

(1,170)(1,017)

(972)

(890)

(1,027)(1,164)(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.
(Note 4) The figures for short-term assets after fiscal year 2020 are included in domestic bonds.
(Note 5) The figures for returns for the periods from FY2015 to FY2021 represent total modified returns (after the deduction of fees, etc.), and the figures for returns for
FY2022 represent time-weighted returns (before the deduction of fees, etc.)

33

FY2022

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

2 Issues held

Issues held (1)The tables below show the top 10 bond and equity issues held indirectly through entrusted investment and directly throughin-house investment as of the end of March 2023, with bond issues classified by issuer name and equity issues by issuename. For information concerning bond and equity issues ranked 11th or lower, see the website of the Federation (available inJapanese only).
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 Japan Expressway Holding and Debt Repayment Agency
4 Joint LGB
5 Tokyo Metropolitan Government
6 Osaka Prefecture
7 Kanagawa Prefecture
8 Japan Housing Finance Agency
9 Hyogo Prefecture
10 Shizuoka Prefecture
Total
291 Issuers○ Domestic equity (in order of total market value)
Total market value(Unit: JPY100M)
5,867
474
457
433
329
227
204
179
175
173
12,010○ Foreign bond (in order of total market value)No.

Names of issuer

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

No.

Issue names

1 Toyota Motor Corporation
2 Sony Corporation
3 Keyence Corporation
4 Nippon Telegraph and Telephone Corporation
5 Mitsubishi UFJ Financial Group
6 Sumitomo Mitsui Financial Group
7 Daiichi Sankyo
8 Shin-Etsu Chemical
9 Hitachi
10 Tokyo Electron
2,196 Issues
Total

Total market value(Unit: JPY100M)
26,839,000
512
3,537,500
425
507,900
328
7,461,700
300
32,858,000
284
4,201,500
227
4,688,400
227
5,006,100
217
2,512,600
184
1,121,000
183
16,269No. of shares○ Foreign equity (in order of total market value)
Total market value(Unit: JPY100M)
6,264
1,061
1,036
829
681
617
269
256
197
185
13,766

34

No.

Issue names

1 APPLE INC
2 MICROSOFT CORP
3 AMAZON.COM INC
4 ALPHABET INC-CL A
5 NVIDIA CORP
6 META PLATFORMS INC
7 ALPHABET INC-CL C
8 TESLA INC
9 VISA INC
10 TAIWAN SEMICONDUCTOR MANUFACTURING
2,908 Issues
Total

Total market value(Unit: JPY100M)
2,815,121
618
1,353,693
519
1,844,315
254
1,413,790
195
433,023160
506,799143
1,030,317
143
466,664129425,143128
5,130,808
120
15,465

No. of shares

Employees' Pension Insurance Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

2 Issues held

Issues held (2)○ Alternative investment (classified by asset class and arranged in the descending order of total market value)
Asset class

Names of entrusted investment
management institutions

Names of beneficial investment institutions

Total market value(in 100M yen)Domestic real
Sumitomo Mitsui Trust Bank
Sumitomo Mitsui Trust Bank
estateDomestic real
Nomura Asset Management
Nomura Real Estate Asset Management
estateMitsubishi UFJ Trust and Banking
Domestic PE
Mitsubishi UFJ Trust and Banking Corporation
Corporation
Foreign real
Tokio Marine Asset Management Tokio Marine Asset Management
estateForeign real
PGIM Japan
PGIM, INC.
estateForeign
J.P. Morgan Asset Management J.P.MORGAN INVESTMENT MANAGEMENT INC.
infrastructure
Foreign
Tokio Marine Asset Management BLACKROCK FINANCIAL MANAGEMENT, INC.
infrastructure676

Foreign PE

Nomura Asset Management

HARBOURVEST PARTNERS, LLC

60

Foreign PE

J.P. Morgan Asset Management

J.P.MORGAN INVESTMENT MANAGEMENT INC.

39

55
33
5

245
129
67

(Note 1) The names of issuers and issues are those assigned by the Federation as of the end of March 2023 using data from the Nomura Research Institute’s T-STAR/GX system,
MSCI’s Barra One, and Bloomberg(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 ResearchInstitute.
(Note 3) Issuers of bonds held in relation to active investment of hedged foreign bonds are classified as issuers of foreign bonds.
(Note 4) The names of issuers and issues may be different from those on the list of all issues held published separately on the website.
(Note 5) The above table covers only items for which entrusted investment management institutions consented to disclosure.

35