Fiscal Year 2019 Review of Operations
Annuity Retirement 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

Annuity Retirement 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 Investment results(1) Asset mix・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 5(2) Investment return・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 6(3) Investment income・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 7(4) Value of assets・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 8(5) Fees・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 9
2 Benchmark portfolio・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 10
3 Risk management(1) Approach to risk management・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 11(2) Risk management efforts・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 12(3) Status of risk management・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 13【Section 2 Fund Investment System, etc. of the Federation】
1 Organizational structure・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 15
2 Fund Management Committee・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 18
3 Basic approach to investment・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 20【Section 3 Reference Data】
1 Changes in the investment results・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 22
2 Issues held・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 23
2

Annuity Retirement Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

Investment Results (Overview)

Investment return+0.50% Realized return (book value basis)(FY2019)

Investment income +JPY1.997 billion Realized income(FY2019)(book value basis)

Value of investment assets: JPY458.1 billion Book value(End of FY2019)* As pension funds are intended for long-term investment, the investment status must be judged from the long-term
perspective.

(Note 1) The return and income represent figures after the deduction of fees, etc. settled within the relevant period.
(Note 2) Realized income represents the sum of trading profits/losses and interest and dividend income, etc.

3Annuity Retirement Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

Section 1 Administration and Investment of Funds in FY20194

Annuity Retirement Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

1 Investment results(1) Asset mix
The composition by asset (book value basis) is as follows:

Composition by Asset Class(as of end of FY2019)(Unit: %)Short-term
assets2.6%

FY2019FY2018Benchmarkportfolio

End of FY

End of Q1

End of Q2

End of Q3

End of Q4(End of FY)

Domestic
bonds

97.4

93.5

98.9

99.2

97.4

100.0

Short-term
assets

2.6

6.5

1.1

0.8

2.6

-

Total

100.0

100.0

100.0

100.0

100.0

100.0

(Note 1) Due to rounding, the total sum of individual figures may not necessarily add up to 100%.
(Note 2) Loans are included in domestic bonds.
(Note 3) Short-term assets held by each fund were classified into relevant asset classes in principle.

Domestic
bonds
97.4%

(Reference) Breakdown of domestic bonds(Unit: JPY100M)
End of FY2019
Value of assets

Domestic bonds
Loan

5

Composition

4,460

100.0%

808

18.1%

Annuity Retirement Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

1 Investment results(2) Investment return
The realized return for FY2019 was 0.50% for the overall assets.
Domestic bonds held by the Annuity Retirement Benefit Association Reserve Fund were evaluated based on book value on
the premise of continued holding until maturity.
Changes in realized return(Unit: %)0.60%

FY2019Realized return

Q1

Q2

Q3

Q4

FY total

0.13

0.13

0.13

0.12

0.50

Each quarter

0.50%

0.50%
Aggregate

0.40%

0.38%

0.30%

Domestic bonds

0.13

0.13

0.13

0.12

0.51

0.25%
0.20%

Short-term assets

0.00

0.00

0.00

0.00

0.00

0.13%

0.13%

0.13%

0.12%

Q1

Q2

Q3

Q4

0.10%
0.00%

(Reference)(Unit: %)FY2019Q1
Modified total return

0.73

Q2

0.55

Q3

-0.60

Q4

FY total

-0.56

-0.04

0.60%

Realized return by asset(aggregate for the fiscal year)
0.51%

0.50%

0.50%
0.40%
0.30%

(Note 1) The return in each quarter is the period rate.
(Note 2) Loans are included in domestic bonds.
(Note 3) The realized return and modified total return represent figures after the deduction of fees, etc.
settled within the relevant period.
(Note 4) The modified total return represents the realized return adjusted for the effects of changes invaluation gains/losses that would arise if the assets are evaluated based on market value.

0.20%
0.10%
0.00%

0.00%
Domestic bonds

6

Short-term assets

Overall assets

Annuity Retirement Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

1 Investment results(3) Investment income
The realized income for FY2019 was JPY1.997 billion (for overall assets).
Domestic bonds held by the Annuity Retirement Benefit Association Reserve Fund were evaluated based on book value on
the premise of continued holding until maturity.
Changes in realized return(Unit: JPY100M)(Unit: JPY100M)

FY2019
Q1

Q2

Q3

24.00

Q4

FY total

Each quarter

20.00

19.97
Aggregate

Realized income

4.57

4.97

5.19

5.25

19.97

16.00

Domestic bonds

4.57

4.97

5.19

5.25

19.97

12.00

Short-term assets

0.00

0.00

0.00

0.00

0.00

14.73

9.54
8.00
4.57

4.97

5.19

5.25

Q1

Q2

Q3

Q4

4.00
0.00

(Reference)(Unit: JPY100M)

Realized return by asset(aggregate
for the fiscal year)(Unit: JPY100M)

FY2019Investment income

Q1

Q2

Q3

Q4

FY total

24.00

26.68

22.20

-25.28-25.06

-1.47

20.00

19.97

19.97

16.00

(Note 1) The realized income and investment income represent figures after the deduction of fees,
etc. settled within the relevant period.
(Note 2) Realized income represents the sum of trading profits/losses and interest and dividend
income, etc.
(Note 3) Loans are included in domestic bonds.
(Note 4) The investment income represents the realized income adjusted for the effects of changes
in valuation gains/losses based on market value.
(Note 5) Due to rounding, the total sum of individual figures may not necessarily add up to FY total.

12.00
8.00
4.00
0.00
0.00
Domestic bonds

7

Short-term assets

Overall assets

Annuity Retirement Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

1 Investment results(4) Value of assets
The book value, total market value and valuation gains/losses by asset is as follows.

(Unit: JPY100M)

FY2019FY2018End of FY
Book
value

Total
marketvalue

Domestic
bonds

3,457

3,528

Short-term
assets

93
3,550

Total

End of Q1
Book
value

Total
market
value

71

3,445

3,541

93

0

239

3,621

71

3,684

Valuation
gains/losses

End of Q2
Book
value

Total
market
value

96

3,966

4,077

239

0

43

3,780

96

4,008

Valuation
gains/losses

End of Q3
Book
value

Total
market
value

111

4,160

4,243

43

0

33

4,119

111

4,193

Valuation
gains/losses

End of Q4 (End of FY)
Book
value

Total
market
value

83

4,460

4,510

50

33

0

120

120

0

4,276

83

4,581

4,630

50

Valuation
gains/losses

Valuation
gains/losses(Note 1) Due to rounding, the total sum of individual figures may not necessarily add up to Total.
(Note 2) The total market value and valuation gains/losses are indicated here for reference. The valuation gains/losses were tentatively calculated based on the market value.
(Note 3) Loans are included in domestic bonds.
(Note 4) Short-term assets held by each fund were classified into relevant asset classes in principle.

8

1 Investment results

Annuity Retirement Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)(5) Fees
There are no fees related to investment because the funds of the Annuity Retirement Benefit Association Reserve Fund areinvested in domestic bonds through in-house investment and investment of deposits by member associations.

9Annuity Retirement Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

2 Benchmark portfolio

Benchmark portfolio(1) Benchmark portfolio (asset mix)
Domestic bonds
Asset mix

100%

The Federation manages the Annuity Retirement Benefit Association Reserve Fund with the objective of contributing to
the stability of the annuity retirement benefit plan operations based on the characteristics of a cash-balance pension plan
whose benefit level is linked to government bond yields or other benchmarks. To this end, the Federation determined an
asset mix from the long-term perspective.
In relation to the asset mix of the Annuity Retirement Benefit Association Reserve Fund, the full amount of funds isinvested in domestic bonds.

10

3 Risk management

Annuity Retirement 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 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 fund in consideration of points including the following: thatinvestment of funds should be made safely and efficiently from a long-term perspective and that a cash balance-type
pension plan links the benefit level to the government bond yield or other benchmarks.
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) Risk management shall be appropriately implemented in consideration of the characteristics of a cash-balance pension
plan whose benefit level is linked to government bond yields or other benchmarks.

11

3 Risk management

Annuity Retirement Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)(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, for its asset as a whole, the Federation keeps track of and manages the status of the deviation of the fundfrom the benchmark in terms of the asset mix.
○ Management of asset administration institutions
The Federation requires asset administration institutions to fulfill the fiduciary responsibilities and develop systems toensure compliance with laws, and appropriately manages them by keeping track of their status of asset administration.
○ 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.

12Annuity Retirement Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

3 Risk management(3) Status of risk management○ Domestic bonds
1. Change in duration
Duration, which is an indicator of market risk related to bond investment, represents sensitivity in terms of how muchbond prices change in response to a certain change in interest rates.
The duration of domestic bonds was from 12.23 to 12.45.
Changes in duration of domestic bonds
14.00
13.50
13.00
12.50
12.00
11.50
11.00
Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

2. Status of holding of domestic bonds〇Status of holding of bonds by credit rating
While the Federation makes it a principle to limit its bond investments to bonds with a credit rating of A or higher, it did
not hold bonds with a credit rating of BBB or lower in FY2019.
(Note) This policy applies to bonds other than government bonds, municipal bonds, and bonds issued by corporations under special laws (limited to those witha government guarantee).

13

Annuity Retirement Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

Section 2 Fund Investment System, etc. of the Federation

14

1 Organizational structure

Annuity Retirement 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, Finance Department was established as of April 1, 2020 in order to establish decisionmaking and administration and management systems independent from systems related to traditional assets following the earnest
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.

15

1 Organizational structure

Annuity Retirement 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.

16

Annuity Retirement 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

17

Annuity Retirement 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

18

Annuity Retirement 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 funds

19

3 Basic approach to investment

Annuity Retirement Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

Basic approach to investment○ Basic policy
Funds shall be invested for the purpose of contributing to the stable management of annuity retirement benefit plan
operations in light of the characteristics of a cash balance-type pension program, whose benefit level is linked to thegovernment bond yield or other benchmarks.
In addition, funds shall be managed appropriately by establishing a benchmark portfolio so that investment returns needed
for the fund (i.e. assumed return (meaning the assumed return stipulated in Article 28, Paragraph (5) of the Order for
Enforcement of the Local Public Service Mutual Aid Association Act (Cabinet Order No. 352 of 1962))) will be generated
with the minimum risk.

Basic Policy for Management and Investment of Annuity Retirement Benefit Association Reserve Fund (Extract)
1. Basic Policy
The Federation shall manage the Annuity Retirement Benefit Association Reserve Fund with the objective of contributing to thestability of the annuity retirement benefit plan operations based on the characteristics of a cash-balance pension plan whose
benefit level is linked to government bond yields or other benchmarks, from the long-term perspective in a safe and efficientmanner.
Accordingly, the Federation shall administer and invest the Annuity Retirement Benefit Association Reserve Fund by
establishing an asset mix from the long-term perspective (the “benchmark portfolio”).
2. Investment target
The investment of the Annuity Retirement Benefit Association Reserve Fund, which has the characteristics of a cash-balance
pension plan, shall be managed appropriately by establishing the benchmark portfolio so that investment returns needed for thefund (i.e., assumed return (meaning the assumed return stipulated in Article 28, Paragraph (5) of the Order for Enforcement of the
Local Public Service Mutual Aid Association Act (Cabinet Order No. 352 of 1962))) will be generated with the minimum risk.
In doing so, attention shall be paid not to distort, among other things, price formation in the market and private sector investment
activities.

20Annuity Retirement Benefit Association Reserve Fund(National Federation of Mutual Aid Associations for Municipal Personnel)

Section 3 Reference Data

21

Annuity Retirement 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)

FY2016FY2017FY2018FY2019Realized return

0.13

0.39

0.42

0.43

0.50

Domestic
bonds

0.16

0.41

0.43

0.46

Short-term
assets

0.02

0.00

0.00

0.00

(Reference)

Modified total
returnFY2015(second half)

FY2016FY2017FY2018FY2019Realized income

0.27

3.74

8.26

13.00

19.97

0.51

Domestic
bonds

0.26

3.74

8.26

12.99

19.97

0.00

Short-term
assets

0.01

0.00

0.00

0.01

0.00

(Reference)(Unit: %)FY2015(second half)

FY2016FY2017FY2018FY2019

8.06

-3.30

1.73

2.60

-0.04

Investment
income(Unit: JPY100M)
FY2015(second half)

FY2016FY2017FY2018FY201916.96-32.39

33.75

77.98

-1.47

(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.

22

Annuity Retirement 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 issues held through in-house investment as of the end of March 2020, classified byissuer name. For information concerning bond issues ranked 11th or lower, see the website of the Federation.
The status of holding related to issues does not represent the assessment of issuers, etc. by the Federation.
○ Domestic bond (in order of book value balance)No.

Names of issuer

1 Japan Finance Organization for Municipalities
2 Joint LGB
3 Aichi Prefecture
4 Government of Japan
5 Kanagawa Prefecture
6 Shizuoka Prefecture
7 Kyoto Prefecture
8 Chiba Prefecture
9 Tokyo Metropolitan Government
10 Fukuoka Prefecture
Total
55 IssuersBook value balance(in 100M yen)
2,243
95
80
68
60
60
56
54
54
52
3,652

(Note 1) The names of issuers are provided by the Federation based on data registered in the T-STAR/GX system of Nomura Research Institute and BarraOne system of MSCI as of theend of March 2020.
(Note 2) The book value balance is an aggregated figure calculated for each issuer by the Federation based on data registered in T-STAR/GX system of Nomura Research Institute.

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