Japan’s GPIF to raise alternative assets allocation to 3% in three years: Report

Photographer: Tomohiro Ohsumi/Bloomberg

Japan’s Government Pension Investment Fund (GPIF), which last year announced its entry into private equity investments, is now looking at increasing its allocation to alternative assets to 3 per cent from 0.2 per cent over the next three years, a report from Asian Investor said on Thursday

The shift will translate to about $41 billion to be pooled into the asset class.

GPIF, the world’s largest pension fund and traditionally a conservative investor, said that it would be interested in asset classes such as real estate, private equity and infrastructure.

The $1.5-trillion pension fund has been warming up to alternative assets of late. Earlier this year, it announced the appointment of US-based global private markets firm StepStone Infrastructure & Real Assets as manager of its global infrastructure fund-of-funds.

It has also announced the appointment of Sumitomo Mitsui Asset Management Co as gatekeeper of the new mandate. It also granted a mandate to Mitsubishi UFJ Trust and Banking to handle its domestic real estate investments in Japan.

Seeking to diversify its alternative asset investments, the pension fund has been aiming to increase the size of its alternative investments, which includes private equity, infrastructure, and real estate, to 5 per cent of total assets under management.

In fact, it has been a growing trend for pension funds world over to allocate more for alternative assets. Another Japanese pension fund — Japanese Pension Fund Association for Local Government Officials, locally known as Chikyoren – earlier selected Sumitomo Mitsui Trust Bank as one of its external managers for local private equity investments.

The pension fund, which manages assets for local civil servant members, had in August also named Mizuho Global Alternative Investments as its manager for overseas infrastructure mandate.

Also Read:

Japan’s GPIF picks StepStone as global infrastructure fund-of-funds manager

Japanese pension fund Chikyoren selects Sumitomo Mitsui as manager for local PE

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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.