Japan’s $230 billion Pension Fund Association for Local Government Officials, or Chikyoren, has hired Barings and Mitsui Real Estate Investment Advisors Co to manage allocations to overseas private debt and domestic real estate respectively, according to an announcement.
Barings Japan will serve as an advisor while its Irish affiliate, Barings International Fund Managers (Ireland) Ltd, will serve as a subadvisor for the private debt allocation.
Similarly, Daiwa Fund Consulting will serve as an advisor for the domestic real estate allocation, while Mitsui Real Estate will serve as the subadvisor.
Chikyoren, which is the country’s second-largest pension fund, did not disclose the amount of the allocations. It announces manager-specific allocations once a year when it releases its full fiscal year results, which is scheduled on July 2.
In April, Chikyoren announced that it hired Nomura Asset Management to manage a private debt mandate and Tokio Marine to oversee a domestic infrastructure mandate.
Earlier this year, the pension fund announced that it had hired five managers – Clarion Partners to manage an allocation to overseas real estate, Asset Management One, Nissay Asset Management and Nomura Asset Management to actively manage allocations to domestic equities, as well as Sumitomo Mitsui Trust Bank to manage two passive ESG allocations.
Last month, Bloomberg reported that Chikyoren expects to post the best returns since 2001 on the back of the global equity market’s rally. The pension fund projects returns to exceed 20% in the year ended March. In 2019, it saw a -5% return.