Japan's GPIF to make infra investments with OMERS, DBJ - report

According to Nikkei, a partnership will be formed next year to pursue investments in airports, railways, ports and power facilities in the US and Europe.

The public pension fund currently has some JPY120 trillion ($1.16 trillion) in assets under management. About 60% of that is in Japanese bonds, with the rest allotted to foreign bonds as well as domestic and international stocks.

Although the size of GPIF's infrastructure commitment is yet to be set, it is expected to anywhere from tens of billions of yen to hundreds of billions of yen. The news comes a month after a government-appointed panel issued a report recommending Japan's pension funds increased their commitments to alternative assets.

The so-called "Panel for Sophisticating the Management of Public/Quasi-public Funds" was formed in December last year as part of a series of bold policy changes brought in by Prime Minister Shinzo Abe in a bid to restore growth to the nation's economy.

The report recommended that the country's pension funds - which collectively hold JPY200 trillion in assets - should review domestic bond holdings and consider investing more in overseas assets. They should also look to diversify into private equity, venture capital, real estate investment trusts, infrastructure and commodities, where returns may be higher than on local sovereign bonds.

 

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• North Asia
• Infrastructure
• LPs
• Japan
• Infrastructure
• Government Pension Investment Fund (Japan)
• The Development Bank of Japan (DBJ)
• Ontario Municipal Employees Retirement Scheme
• LPs