Japan's GPIF reappoints Hiro Mizuno as CIO

Mizuno spent more than a decade with Coller Capital before joining GPIF in 2015 as its first-ever CIO. His term has now been extended to the end of March, according to a statement. This is said to reflect the fact that contracts for executive directors cannot end after that of the fund's president.

Mizuno's appointment coincided with plans for a fundamental shift in GPIF's asset allocation, with exposure to public equities and alternatives dialed up as investments in domestic bonds were dialed down. The reforms were part of government efforts to support an aging population. The fund has been paying out more in benefits than it has received in contributions since 2009.

In March 2014, GPIF had JPY129 trillion ($1.2 trillion) in assets: 53.43% in domestic bonds, 15.88% in domestic equities, 10.66% in foreign bonds, 15.03% in foreign equities, and 5% in short-term assets. Total assets stood at JPY159 trillion as of March 2019, with 35% in domestic bonds, 25% in domestic equities, 15% in foreign bonds, and 25% in foreign equities.

GPIF's alternatives allocation – which covers private equity, infrastructure, and real estate – was 0.26% against a maximum permitted exposure of 5%. Of the JPY432.7 billion alternatives portfolio, JPY14.3 billion was in private equity, JPY293.6 billion in infrastructure, and JPY124.9 billion in real estate. Discretionary mandates granted to third-party managers accounted for all the real estate assets and half the infrastructure assets.

GPIF entered the alternatives space in 2014 with the establishment of an infrastructure co-investment platform with Development Bank of Japan (DBJ) and Ontario Municipal Employees Retirement System (OMERS). This was followed by a commitment to a global private equity fund-of-funds managed by the International Finance Corporation (IFC).

GPIF made its first call for applications from alternative managers in April 2017. Since then, it has appointed gatekeepers and separate account managers for infrastructure and real estate. This has yet to happen for private equity, though the selection process started in 2017.

Sumitomo Mitsui Asset Management and Nomura Asset Management are gatekeepers for global core infrastructure with StepStone and Pantheon the designated fund-of-funds managers. Asset Management One and CBRE Global Investment Partners serve as gatekeeper and fund-of-funds manager, respectively, for global real estate.

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