Fiscal Year 2024 Business Overview - Investment Performance: FY2024 Return of 0.71% (Annualized)

Overview

This article reports that the Government Pension Investment Fund (GPIF) has published its FY2024 business overview, achieving an investment return of 0.71% (annualized) for fiscal year 2024. ## Key Points ### FY2024 Investment Performance - FY2024 return was 0.71% (annualized), with earnings of 1.7334 trillion yen - Investment assets reached 249.7821 trillion yen as of the end of FY2024 - Cumulative return since the start of market operations (FY2001-FY2024) was 3.99% per annum - Annual return for the 4th medium-term target period (FY2020-FY2024) achieved 4.20% ### Asset Composition and Allocation - Domestic bonds: 24.05% (61.6186 trillion yen), deviation of -0.95% from the 25% basic portfolio - Domestic stocks: 23.94% (61.9188 trillion yen), deviation of -1.06% from the 25% basic portfolio - Foreign bonds: 24.37% (62.7302 trillion yen), deviation of -0.63% from the 25% basic portfolio - Foreign stocks: 27.64% (71.1500 trillion yen), deviation of +2.64% from the 25% basic portfolio ### Market Environment and Investment Characteristics - FY2024 saw rising interest rates in domestic and foreign bonds and high stock price volatility - Implemented fine-tuned rebalancing using stock index futures and bond futures - Domestic stock market declined, foreign stock market rose, with slight yen appreciation - Interest and dividend income (income gain) from increased dividends in domestic and foreign stocks totaled 4.6788 trillion yen ### Initiatives for Advanced Investment Management - Excess return against the composite benchmark return was 0.09% in FY2024 - Cumulative excess return for the 4th medium-term target period achieved 0.43% - Implemented stable management of active stock funds and resumed foreign stock lending - Introduced passive funds in ESG index investment to manage and suppress differences between policy benchmarks and parent indices ### Development of New Investment Policies - Formulated a new basic portfolio for the 5th medium-term target period starting in FY2025 - Accepted "Asset Owner Principles" and formulated implementation policies (September 2024) - Established "Sustainability Investment Policy" outlining basic concepts for investment considering ESG and impact (March 2025) The article emphasizes that GPIF continues stable management from a long-term perspective, contributing to pension finance stability, while advancing and diversifying its investment management based on the basic portfolio.