Japan: ‘Big four’ pension fund Chikyoren chooses Nomura as domestic investment manager

Pension fund visual. Credit: Business Korea

Japan’s ¥21.1 trillion ($185 billion) Pension Fund Association for Local Government Officials, better known by the abbreviated name Chikyoren, has hired Nomura Asset Management as one of its domestic real estate managers.

Chikyoren had earlier released a request for proposals (RFP) for external fund managers who can invest on its behalf in domestic and international alternative assets last July.

In August, the organisation had hired 11 managers to run active global bond portfolios, and Nomura was among them. The others were Goldman Sachs Asset Management, DIAM Asset Management, Fidelity Investments and Prudential Investment Management Japan.

Its first selection for managing domestic real estate investments was Resona Bank, which like Nomura was also chosen to run one of its international bond portfolios. That decision was announced in March this year.

Chikyoren is looking at long-term, income driven strategies from its fund managers.

It did not disclose the proportion of assets that would be dedicated to real estate, said a PERE report. But it quoted a placement agent’s head as saying that a maximum of five per cent will be kept for investing in alternative assets, such as real estate and infrastructure.

Before Chikyoren’s RFP, another much bigger player had shown the way. The Government Pension Investment Fund (GPIF) had issued an RFP two years ago, as had the Federation of National Public Service Personnel Mutual Aid Associations, one of the big four pension managers of Japan.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.