Pension Seminar Defined Contribution (DC)
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Defined Contribution (DC)
Pension Seminar
Intermediate Course
May 2022
Information provided here is for informational purposes only for making investment decisions and does not
intend to solicit investment. While Sompo Japan DC Securities Inc. has prepared this document based on
data which were deemed to be reliable, Sompo Japan DC Securities Inc. does not guarantee its integrity or
accuracy. Furthermore, past performance results do not guarantee future performance. These slides have
been planned and prepared by Sompo Japan DC Securities Inc. for the purpose of using in your company’s
DC pension plan education seminar. Copyrights belong to Sompo Japan DC Securities Inc. Please do not
release, rent or provide these slides outside of your company.
.
Copyright Sompo Japan DC Securities Inc
DC Plan
The purpose of a DC plan is to “prepare money
for post-work life”.
65
・Benefit amount depends on investment results.
・The amount will be kept invested until benefit payments are completed.
・In principle, early withdrawal from the DC plan and early withdrawal of
your assets are not allowed.
Copyright Sompo Japan DC Securities Inc 2
Main Amendments to the DC Law in 2022
Enforcement Amended items Outline
The upper age limit to claim
(1) Expansion of claim period
April 2022 retirement benefits will be raised
for retirement benefits
to age 75.
①For In principle, participation will be
(2) Raising corporate- allowed until age 70.
May 2022 participant type DC plan ＊Participant eligibility age differs by company.
eligibility age Participation will be allowed until
②For iDeCo
age 65.
(3) Relaxation of requirements Improvement of early withdrawals
for early lump-sum payments (early lump-sum payments) under
May 2022
when a foreign national returns DC plans for foreign national
to home country employees
Rollover of assets in corporate-
May 2022 (4) Expansion of portability type DC plan to Pension Fund
Association upon retirement
Oct. (5) Relaxation of requirements Elimination of DC plan document
2022(Schdul for iDeCo participation of requirements to prescribe
e) corporate-type DC participants simultaneous participation in iDeCo
Copyright Sompo Japan DC Securities Inc 3
Outline
１. Market Environment and Investment Results
２. Reviewing Investments
３. Procedures & Deadlines
Copyright Sompo Japan DC Securities Inc 4
１ Market Environment and
Investment Results
.
Copyright Sompo Japan DC Securities Inc
Price movements of major assets over the past
decade
Record date: end of February 2022
Copyright Sompo Japan DC Securities Inc 6
Risk/Return of Investment Trusts
＜Risk/Return by asset class＞
Pursuit of a higher return is accompanied by higher risk.
If the risk is minimized, a higher return cannot be expected.
*In addition to the above, there are investment trusts which invest in asset classes other than equities and bonds (real
estate investment trusts (REIT), etc.).
Copyright Sompo Japan DC Securities Inc 7
Stock Price Index
(Past 10 years from March-end 2012 to March-end 2022)
TOPIX （JP） S&P500 （USA） FTSE100 （U.K） DAX30 （DE）
400
350
321.7
300
250
227.8
200 207.5
150
130.3
100
50
0
'12/3 '14/3 '16/3 '18/3 '20/3 '22/3
The above chart shows movements of stock price indices until the end of March, 2022,
using the price at the end of March 2012 as 100
This information is provided as an informational and referential purposes only and is not intended as
8
a solicitation for investment. Past performance is no guarantee of future results.
Copyright Sompo Japan DC Securities Inc
Price Fluctuations of Investment Products（Japanese
Equities）
DIAM Japanese Equity Index Fund
Sumitomo Mitsui Value Equity Pension Fund
Fidelity Japan Growth Fund
220
190
160
130
100
70
'17/08 '18/02 '18/08 '19/02 '19/08 '20/02 '20/08 '21/02 '21/08 '22/2
The above chart shows price fluctuations until the end of Mar. 2022, using the price at the end of Aug. 2017 as 100.
This information is provided as an informational and referential purposes only and is not intended as
9
a solicitation for investment. Past performance is no guarantee of future results.
Copyright Sompo Japan DC Securities Inc As of End of March, 2022
Price Fluctuations of Investment Products（Foreign
Equities）
Index International Equity Asahi Nvest Global Value
220
190
160
130
100
70
'17/08 '18/02 '18/08 '19/02 '19/08 '20/02 '20/08 '21/02 '21/08 '22/2
As of End of March, 2022
The above chart shows price fluctuations until the end of Mar. 2022, using the price at the end of Aug. 2017 as 100.
This information is provided as an informational and referential purposes only and is not intended as
10
a solicitation for investment. Past performance is no guarantee of future results.
Copyright Sompo Japan DC Securities IncForeign Exchange
(Past 10 years from March-end 2012 to March-end 2022)
USD Euro
Yen
160
Weaker
140 Yen
136.70
120 109.8 122.39
100
82.19
80
Stronger
60
'12/3 '14/3 '16/3 '18/3 '20/3 '22/3 Yen
The above chart shows movements of foreign exchange rates from the end of March 2012 to the end of March 2022.
This information is provided as an informational and referential purposes only and is not intended as
11
a solicitation for investment. Past performance is no guarantee of future results.
Copyright Sompo Japan DC Securities IncLong-term Interest Rate
(Past 10 years from March-end 2012 to March-end 2022)
JP U.S.A Germany
3.5%
3.0%
2.5% 2.210% 2.338%
2.0%
1.5% 1.790%
1.0%
0.548%
0.5% 0.990%
0.0% 0.220%
-0.5%
-1.0%
'12/3 '14/3 '16/3 '18/3 '20/3 '22/3
The above chart shows movements of long-term interest rates from the end of March 2012 to the end of March 2022.
This information is provided as an informational and referential purposes only and is not intended as
12
a solicitation for investment. Past performance is no guarantee of future results.
Copyright Sompo Japan DC Securities IncPrice Fluctuations of Investment Products（Foreign Bonds）
Index International Fixed Income
220
190
160
130
100
70
'17/8 '18/2 '18/8 '19/2 '19/8 '20/2 '20/8 '21/2 '21/8 '22/2
The above chart shows price fluctuations until the end of Mar. 2022, using the price at the end of Aug. 2017 as 100.
This information is provided as an informational and referential purposes only and is not intended as
13
a solicitation for investment. Past performance is no guarantee of future results.
Copyright Sompo Japan DC Securities Inc As of End of March, 2022Price Fluctuations of Investment Products（J-REIT,
Foreign REIT）
MHAM J-REIT Index Nomura J-REIT Nomura World REIT
220
190
160
130
100
70
'17/8 '18/2 '18/8 '19/2 '19/8 '20/2 '20/8 '21/2 '21/8 '22/2
The above chart shows price fluctuations until the end of Mar. 2022, using the price at the end of Aug. 2017 as 100.
This information is provided as an informational and referential purposes only and is not intended as
14
a solicitation for investment. Past performance is no guarantee of future results.
Copyright Sompo Japan DC Securities Inc As of End of March, 2022Price Fluctuations of Investment Products（Balanced）
DC Index Balance80 DC Index Balance60
DC Index Balance40 DC Index Balance20
220
190
160
130
100
70
'17/8 '18/2 '18/8 '19/2 '19/8 '20/2 '20/8 '21/2 '21/8
The above chart shows price fluctuations until the end of Mar. 2022, using the price at the end of Aug. 2017 as 100.
This information is provided as an informational and referential purposes only and is not intended as
As of End of March, 2022 15
a solicitation for investment. Past performance is no guarantee of future results.
Copyright Sompo Japan DC Securities IncChanges of Interest Rates in Principal Guaranteed Products
（Past 10 Years）
DC Guaranteed Principal plus Seven Bank DC Deposit 3 Year Fixed
Accident Insurance
0.180%
0.170%
0.160%
0.140%
0.120%
0.091%
0.100%
0.080%
0.060%
0.040%
0.020% 0.011%
0.010%
0.000%
'12/3 '13/3 '14/3 '15/3 '16/3 '17/3 '18/3 '19/3 '20/3 '21/3 '22/3
The above chart shows the changes of interest rates from March-end, 2012 to March-end, 2022.
Copyright Sompo Japan DC Securities Inc 16Investing ¥10,000/month
Assumption: Invest ¥10,000 every month in each product at month-end price
Last 10 years Since plan implementation
（cumulative contributions: ¥1,200,000） (cumulative contributions : ¥560,000）
Period: Apr. 2011 – Mar. 2022 Period: Aug. 2017 – Mar. 2022
DC Guaranteed Principal plus Accident… 120.0 56.0
Seven Bank DC Deposit 3 Year Fixed 120.3 56.0
DC Index Balance80 189.3 69.4
DC Index Balance60 170.8 65.9
DC Index Balance40 154.2 62.5
DC Index Balance20 138.0 59.0
DIAM JP Equity Index 187.6 67.2
SumitomoMitsui Value 173.9 65.8
Fidelity JP Growth 194.8 67.4
Index International Equity 266.0 88.3
Asahi Nvest Global Value 212.3 78.5
Index International Fixed Income 141.3 60.5
MHAM J-REIT Index 173.0 65.5
Nomura J-REIT 189.2 67.1
Nomura World REIT 209.3 80.4
This information is provided as an informational and referential purposes only and is not intended as
a solicitation for investment. Past performance is no guarantee of future results.
Copyright Sompo Japan DC Securities Inc 17Ref. Investment Performance by Product
Period ending March, 2022
Copyright Sompo Japan DC Securities Inc 18Ref. Investment Performance by Product
Period ending March, 2022
Copyright Sompo Japan DC Securities Inc 19AnswerNet Product Lineup
Product Lineup
・Investment Product
Lineup
・Performance Sheet
・Market Commentary
Click on the product name to access the detailed information
Copyright Sompo Japan DC Securities Inc 20AnswerNet Investment trusts
・Investment
Product Guide
・Data Sheet
・Monthly Returns
・Prospectus
・Fund reports, etc.
21,453 -169 21,622
Copyright Sompo Japan DC Securities Inc 21AnswerNet Investment trusts
【Data Sheet】 (Only in Japanese)
Comparing the performance of
funds and their benchmarks
Copyright Sompo Japan DC Securities Inc 222．Reviewing Investments
.
Copyright Sompo Japan DC Securities IncInvesting through DC Plan
Make investments based on the cycle below:
Determine investment
strategy (asset
allocation)
Changing contribution
Planning Making instructions
allocation/Switching
to allocate your
contributions among
the products
Start
Reviewing investing
Monthly contributions
Rebalancing
Reallocation Checking
current status
AnswerNet/AnswerCenter
“Personal Financial Statement” mailed every July
Copyright Sompo Japan DC Securities Inc 24Reviewing Investments
Check your investment performance and asset allocation status even after you
start investing.
＜Notice of Temporary Change in
Operating Hours at AnswerCenter＞
Weekdays 16:00-18:00
Weekends/Holidays Closed
Issued annually in July
Copyright Sompo Japan DC Securities Inc 25Items to Check
Current asset allocation status
【Asset Allocation Worksheet】 【AnswerNet】
Initial asset allocation Current asset allocation
Compare
The asset allocation status
may have changed due to the
price fluctuation of each asset.
Copyright Sompo Japan DC Securities Inc 26Change of Asset Allocation Due to Market Conditions
Generally, the asset allocation status changes due to price
fluctuations of equities.
* Illustrative image
Price JP Equities
fluctuations JP Bonds
Foreign Equities
Foreign Bonds
Asset Percentage Percentage
of equities of equities
balance larger smaller
Bonds
Bonds Equities
50 50 Bonds Equities
Equities
This information is provided as an informational and referential purposes only and is not intended as
a solicitation for investment. Past performance is no guarantee of future results.
Copyright Sompo Japan DC Securities Inc 27Points When Reviewing Investments
（1）Check the current asset allocation status.
（2）Check if there has been any change in your investment strategy
itself.
*Pie charts represent illustrative image of asset value (%)
（1）
（2）
Copyright Sompo Japan DC Securities Inc 28Reviewing Investments (1) Rebalancing
Rebalancing means adjusting your asset allocation back to its
original state based on your initial investment strategy.
* Pie charts represent illustrative
image of asset value (%) Bonds Equities
Initial Allocation
Rise in stock prices A:50 B:50% Decline in stock prices
→% in total asset value
increased
% →% in total asset value
decreased
→ Higher Risk → Lower Risk
A:40% B:40%
B:60% A:60%
Rebalancing has the effect of adjusting changes in the risk derived from changes in asset allocation.
Copyright Sompo Japan DC Securities Inc 29Reviewing Investments (2) Reallocation
Reallocation means changing your asset allocation by taking
into consideration the changes in your investment strategy
resulting from age, etc.
20’s 30’s 40’s 50’s 60’s
e.g.) Asset allocation may be changed due to the following
reasons:
• Aging (shorter time horizon to invest)
• Life changes
• (marriage, birth of child, home purchase, etc.)
• Experience in investing
• Market conditions
Returns (gains) and risk tolerance should be reviewed.
Copyright Sompo Japan DC Securities Inc 30３．Procedures & Deadlines
.
Copyright Sompo Japan DC Securities IncTwo Ways to Change Products
Target is different between the two procedures.
If you wish to change asset allocation and product(s), you need to
take both procedures.
1. Asset allocation
change
2. Switching
Future Currently held
Target
contributions products
Partial redemption
Fee N/A charge
(Only one product)
Day before
Deadline monthly contribution date Each business day
Realization
Upon selling
of gain/loss
Copyright Sompo Japan DC Securities Inc 32Contact Information
＜Notice of Temporary Change in Operating Hours at
AnswerCenter＞
Weekdays 16:00-18:00 Weekends/Holidays Closed
3. Tsumitate Navi
（Smartphone app）
＊Only in Japanese
QR code for the AnswerNet of
Sompo Japan DC Securities
Copyright Sompo Japan DC Securities Inc 33AnswerNet Login Step
DC Securities Go
“Notice of Opening an Account”
ID･Password
Click to log in
Enter
Reissue password
* If you forgot or lost your ID, please contact the AnswerCenter. If you forgot or lost only password,
please click “Reissue password” on the AnswerNet main page. A new password will be issued.
Copyright Sompo Japan DC Securities Inc 34Confirming ID on Account Statement
0123456789
Mailed every July
Copyright Sompo Japan DC Securities Inc 35AnswerNet - Main Page -
【Menu bar】
【When you are lost】
Click here when you need to
know how to use the website.
Copyright Sompo Japan DC Securities Inc 36Changing Contribution Instructions
Contribution Instructions
Change investment products to be
purchased with future contributions
and their allocations.
Deadline falls on the day before the
next contribution date.
Copyright Sompo Japan DC Securities Inc 37Changing Contribution Instructions
2. Set asset allocations for
investment products you
desire to purchase by 1%.
They need to be totaled to
1. Confirm current 100% at all times.
asset allocation.
3. Click [Confirm]
button below when
finished entering.
↓
Copyright Sompo Japan DC Securities Inc 38Switching
Sell currently held products Switching
and purchase other products
with the sales proceeds.
As for the number of days
required for switching (number
of days from selling to
purchasing), please see here.
Copyright Sompo Japan DC Securities Inc 39Switching
Switching
Accepted on every
business day
Step1. Selecting a product to sell
Step2. Determining the number
of units to sell or the amount in
yen
※The selling amount and the type of sale differ depending on the product.
Step3. Selecting a product to buy
Copyright Sompo Japan DC Securities Inc 40Switching
Select a product(s) to purchase
with the sales proceeds.
Purchase
You can select multiple products to
purchase at one time.
In the “Share” column, enter the percentage by
1% increments with the total amount
representing 100%.
Ex.) For 1 product, enter 100
Ex.) For 2 products, enter 50,50, etc.
Copyright Sompo Japan DC Securities Inc 41Switching
View History: Confirm
transaction details
Date selling
price determined
Date purchasing
price determined
取引内容を確認をして
実行ボタンを押します Submit
Copyright Sompo Japan DC Securities Inc 42Application for Participant Contributions
Application for Participant
Contributions
・New application
・Amount change
・Suspension of
Contribution
Copyright Sompo Japan DC Securities Inc 43Merits of Voluntary Employee Contributions
The full amount of participant contributions is subject to income
deduction, so tax burden is reduced.
【Taxation merit related to taxable income and participant contributions】
Reduced tax amount＝(Total tax rate of income tax and residential tax) x (annual amount of participant contributions)
Reduced tax amount
Total tax rate of (annual)
Taxable income (annual)
income tax and
Participant Contribution Amount
residential tax
(in case of 10k yen/month)
1950k yen or less 15% 18k yen
More than 1950k yen – 3300k yen or less 20% 24k yen
More than 3300k yen – 6950k yen or less 30% 36k yen
More than 6950k yen – 9000k yen or less 33% 39k yen
More than 9000k yen – 18000k yen or less 43% 51k yen
More than 18000k yen – 40000k yen or less 50% 60k yen
More than 40000k yen 55% 66k yen
※The total rate of income tax and residential tax as of Jan 2022. The special income tax for reconstruction is not
considered.
44
※ Taxable income = Salary income – Amount of employment income exemption – Other income exemptions
Copyright Sompo Japan
※ Fractions DC Securities
less than 1,000 yenIncare rounded down.Image of Using Tsumitate Navi (Only in Japanese)
・“Risk tolerance level” of each participant can be assessed by a robo-advisor.
・Based on the recommendation of investment products which suit your risk tolerance
level, you can execute and complete the procedures to change products.
STEP２
STEP1 STEP3
Assessment・
Confirmation Recommendation
Execution
Participants can confirm asset balance, By using a robo-advisor, participants can get Based on assessment results, participants can
monthly contributions, approximate an assessment of asset allocation and take procedures to change investment
cumulative contributions, etc. investment products suitable for their needs. products, etc.
※ Screen images above are for illustrative purposes only and are subject to change.
Copyright Sompo Japan DC Securities Inc 45Downloading and Registration of Tsumitate Navi
(Only in Japanese)
Have these three ready!
・AnswerNet Login ID
10-digit “Participant Code”
App Store is a trademark of Apple Inc.
iOS is the name of the operating system of Apple Inc. iOS is a
・AnswerNet Password
trademark of Cisco Systems Inc. and is used under license. Android,
Google Play and Google Play logo are trademarks of Google LLC.
A temporary password needs to be changed.
Click here to download the app.
・Email address
Please set up to receive
messages from the domain
@tsumi-navi.sjdc.co.jp.
Once you register, you don't need to enter the above information
for a certain period of time from the next login!
Copyright Sompo Japan DC Securities Inc 46Thank you ! Copyright Sompo Japan DC Securities Inc 47
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