How should I allocate assets in a defined contribution pension plan? Imitating the GPIF is easy for now



Feeling neglected? Defined contribution pension plans

Defined contribution pension plans are now being adopted by a significant number of companies.

There are probably many people who have heard the word, but I wonder how many of them actually understand what kind of system it is and actually check it in detail.

Of course, there are some people who check the details and change the investment ratio (contribution ratio), but I imagine that most people tend to neglect it.



How should I manage it – is the neck the asset allocation?

I think most people understand this level of knowledge, but the question is how to operate it, right?

The same is true for the selection of investment products, but perhaps the biggest obstacle is the asset allocation.

That’s right. It’s about what assets to buy and how much to buy them, but don’t you think it’s hard to know how to decide this policy?

In fact, I feel that this is a barrier and many people don’t know what to do with it and end up leaving it unattended.


Now, I’d like to introduce an organization called GPIF. I think it sometimes appears in newspapers, but do you know about it?

The official name of the GPIF is as follows.

Independent Administrative Institution for Pension Fund Management

(Government Pension Investment Fund / The Pension Welfare Service Public Corporation)


GPIFについて知る | 年金積立金管理運用独立行政法人


It is a collection of pension-related payment amounts that are somehow deducted together from the salaries that everyone pays. At any rate, you should think that there is such a lump of money.


前年度末の運用状況ハイライト | 年金積立金管理運用独立行政法人より

Ummm, it’s huge…. The loss of 300 billion yen in the last fiscal year is also a big deal…

GPIF’s Basic Portfolio


The current allocation is as shown.

基本ポートフォリオ | 年金積立金管理運用独立行政法人

As a matter of fact, Japanese corporate pension funds use the asset allocation (sometimes called asset allocation) of this fund as a reference. After all, it is not only the largest in Japan but also one of the largest in the world. Its influence is huge.


The basic portfolio is determined by some big-shot academic or professional who’s doing their best to get it right!

Now, the question that concerns me very much is.


I think that’s what it means.

It is true that the GPIF is entrusted with the people’s precious pensions, so of course they have a duty to explain to the people why they have chosen this basic portfolio.

ということで、GPIF’s Basic Portfolioは、その業界を代表するお偉い学者さんとかプロの面々が幾度と無く議論を重ねて決めているわけです。素晴らしい!頼もしいぞ!

However, strictly speaking, this kind of asset allocation problem doesn’t have a theory or evidence that everyone can agree on properly.

In the first place, asset management is never guaranteed to be based on current views and predictions in the future, so there is a limit to the number of so-called « models » and « theories » that can be used.

Since it is such a world, even if we amateurs think deeply about it, it will not have much effect.


GPIF’s investment performance is boring, but not that bad.

Incidentally, how well has the GPIF performed?

前年度末の運用状況ハイライト | 年金積立金管理運用独立行政法人


Once you’ve decided on the asset allocation, the rest is not so difficult.

The next thing we need to think about is how we are going to structure this asset allocation. In other words, what kind of mutual funds should we buy?

Actually, this is easier than you might think.



I think it’s enough to decide on a product that belongs to the genre of domestic stocks that are lined up for the DC pension plan by using Amidakuji or something like that.

… Well, it’s too unkind to say so, so why don’t you refer to this book for example?

ほったらかし投資術 インデックス運用実践ガイド (朝日新書)

ほったらかし投資術 インデックス運用実践ガイド (朝日新書)

It may sound persistent, but of course it is up to the individual to take the time to carefully examine the type of investment trust he or she chooses.

Conclusion: let’s imitate the GPIF for now

Therefore, when selecting investment products for your defined contribution pension plan, I recommend that you match your asset allocation to the GPIF’s basic portfolio so that you don’t have to worry about it.

(再掲)GPIF’s Basic Portfolio

As for specific investment issues (investment trusts), it is recommended to choose the products lined up in the genre above without thinking about this and that. (I recommend the index fund from the most cost perspective)

Plus: For those who are not satisfied with the GPIF allocation – CalPERS asset allocation


From Annual Investment & Financial Reports

Compared to the GPIF, the ratio of stocks is much higher. In other words, we are taking a lot of risk.

And here’s what the yearly rate of return looks like

From Annual Investment & Financial Reports

Yeah, that’s aggressive!

But if you think that’s a little too extreme, you could add the GPIF and CalPERS allocations together and divide by two.

It’s in English and there are a lot of terms I don’t understand, but it’s called one of the most advanced pension funds in the world, so if you refer to the asset allocation here, you too could become an advanced defined contribution pension plan manager!

If you are interested, why don’t you study it?


The purpose of the said article is to provide information for reference in making investment decisions. In addition, future projections do not guarantee the results. The final decision to actually invest should be made by your own judgment.