Japan's GPIF makes call for alternatives managers

The pension fund said in a disclosure that it wants to set up separately managed accounts covering four areas: global private equity, encompassing multiple strategies; global infrastructure, chiefly focused on core brownfield projects in developed markets; global core real estate in developed markets; and core real estate in Japan.

Registration opens on April 11 and the review process will begin on June 1. Managers should have at least JPY100 billion ($911 million) under management from domestic and foreign pension funds, of which at least JPY30 billion is in comingled fund accounts, separate accounts or outsourced accounts. They are also required to have a five-year track record providing such services and hold a license to conduct investment management activities in Japan.

GPIF had JPY144.8 trillion in assets as of December 2016, of which 33.3% was deployed in domestic bonds, 23.8% in domestic equities, 13.4% in foreign bonds, 23.1% in foreign equities, and 6.4% in short-term assets. The fund is in the process of diversifying away from domestic bonds and into riskier asset classes, including private equity.

The pension fund’s upper limit on alternative investments was set at 5% but current exposure is 0.07%. In 2014, GPIF formed a partnership with Development Bank of Japan (DBJ) and Ontario Municipal Employees Retirement System (OMERS) to jointly invest in infrastructure assets. It is also understood to have backed a global fund-of-funds launched by the International Finance Corporation.

In 2014, the pension fund appointed Hiro Mizuno, formerly of Coller Capital, as CIO.

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• Topics
• North Asia
• LPs
• Fundraising
• Japan
• Government Pension Investment Fund (Japan)