JPY Flow Special Report

Research evidence excerpt

JPY Flow Special Report

Global Markets Research

3 July 2026JPY Flow Special Report

Foreign Exchange - Global

Research Analysts

Solid JGB buying by the GPIF in FY2025 Global FX Strategy

Yusuke Miyairi, CFA - NIplc

GPIF’s solid JGB investment is mainly due to its rebalancing activity, but yusuke.miyairi@nomura.com

it’s likely well positioned to buy more long-dated JGBs, if needed +44 (0) 20 7102 4145

Yujiro Goto - NSC

• There was no major change in GPIF's asset weightings as of end-FY2025; however, yujiro.goto@nomura.com

its domestic bond holdings rose to 26.91% of total assets and 25.4% when reserves +81 3 6703 1120

under the pension special account are excluded.

• Most of GPIF’s solid JGB investment activity is mainly due to rebalancing activity, but

it is likely well positioned to buy more long-dated JGBs, if needed, as it has more in-

house funds in comparison with investments to other asset classes.

• GPIF's FX hedge ratio remains very low, standing at just 1.1% of total bond holdings

as of end-March 2026 (FY2025). This is very different from the hedge ratios of life

insurers, which ranged between 28.3% and 41.4%, as of the same date.

No major change in the GPIF’s asset weightings as of end-FY2025, but its domestic

bond holdings have increased from the previous quarter

GPIF's FY2025 annual report showed that the fund's portfolio remains broadly in line with

its basic portfolio targets (i.e. 25% each for all four asset classes), though its domestic

bond holdings rose from December 2025 to March 2026.

GPIF's annual report for FY2025 (from April 2025 to March 2026) showed that the fund's

portfolio asset weightings as of end-March 2026 were 26.91% for domestic bonds, 23.81%

for domestic equities, 24.48% for foreign bonds and 24.80% for foreign equities (Fig.1).