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.