Fiscal Insight: GPIF FY2025 investment results

Research evidence excerpt

Fiscal Insight: GPIF FY2025 investment results

Global Markets Research

3 July 2026Fiscal Insight

Rates - Japan

Research Analysts

GPIF FY2025 investment results Fiscal Policy

Masaki Kuwahara - NSC

In-house managed domestic bonds increased significantly, accounting for masaki.kuwahara@nomura.com

nearly half of total domestic bonds +81 3 6703 3876

The Government Pension Investment Fund (GPIF) released its investment results for

FY2025 on 3 July.

FY2025 results

The portfolio allocation at the end of FY2025 is shown in Fig.1. The share of domestic

bonds in total pension reserves was relatively high at 26.9%. However, domestic bonds

include pension reserves managed under the government special account (not by GPIF),

and this portion of funds tends to be at a high level at the end of March every year. When

looking at the share in GPIF assets only, domestic bonds accounted for 25.4%, unchanged

from end-FY2024. The shares of other asset classes were also close to the policy asset

mix at 25%.

Since FY2019, when domestic interest rates were extremely low and investment

management became difficult, hedged foreign bonds have been classified as domestic

bonds. At the end of FY2025, hedged foreign bonds increased by JPY0.1trn compared with

the end of FY2024, and their share in the total reserves remained unchanged at 0.5%.

Fig. 1: GPIF portfolio at the end of fiscal year

End–Mar 2025 End-Mar 2026 Increase/decrease Policy

asset mix

Share in Share in Share in

total total total

GPIF GPIF GPIF

pension pension pension

assets assets assets

reserves reserves reserves

JPY100mn ％ ％ JPY100mn ％ ％ JPY100mn ％ ％ ％

Domestic bonds 711,500 25.4 27.6 806,791 25.4 26.9 95,291 -0.1 -0.7 25±6

Domestic bonds excl.

607,470 24.3 23.6 699,136 23.8 23.3 91,666 -0.5 -0.3

short-term assets

Currency headged