Japan’s Chikyoren picks BlueBay, Alternative Investment Capital for alts mandate

Photographer: Tomohiro Ohsumi/Bloomberg

Japan’s $196-billion Pension Fund Association for Local Government Officials, or Chikyoren, has appointed BlueBay Asset Management and Tokyo-based Alternative Investment Capital to manage its alternatives mandate.

It said in a statement last week that it has awarded an offshore private debt mandate to BlueBay and a domestic private equity mandate to Alternative Investment Capital. Chikyoren did not disclose the capital allocation for the mandates.

Headquartered in the UK, BlueBay is an active fixed income manager with over $62 billion assets under management in corporate and sovereign debt, rates and foreign exchange. It is a wholly-owned subsidiary of Royal Bank of Canada with full investment autonomy and substantial operational independence.

On the other hand, established in 2002, Alternative Investment Capital claims to be one of the leading private equity firms in Japan focusing on PE and energy and infrastructure. The firm counts Sumitomo Mitsui and Daido Life Insurance as its biggest shareholders, with holdings of 40.1 per cent and 36 per cent, respectively.

Last month, Chikyoren picked Sumitomo Mitsui to manage its overseas private equity mandate and UBS to manage the fund’s overseas infrastructure mandate.

The state pension fund intends to increase the weighting of its alternative investments – including private equity, infrastructure, and real estate – to as much as 5 per cent of total AUM in the long term from a mere 0.1 per cent in 2016, per its annual report.

Pension funds the world over are allocating more towards alternative assets as the diversification has helped investors cushion the volatility of equity markets. Japan’s Government Pension Investment Fund (GPIF) has recruited asset managers for investments in private equity, infrastructure, and real estate.

In March, the $1.4 trillion GPIF said it is on the lookout for one or more external consultants to work on strategies investing in alternative assets. As the world’s largest pension fund, it aims to allocate 5 per cent of its total assets to alternative investments.

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.

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.