Japan’s GPIF to tap external consultants for alternative investment strategies

Signage is displayed at the entrance to the Government Pension Investment Fund (GPIF) headquarters in Tokyo, Japan, on Friday, July 29, 2016. Photographer: Tomohiro Ohsumi/Bloomberg

Japan’s $1.36 trillion (150.7 trillion Japanese yen) Government Pension Investment Fund (GPIF) is looking for one or more external consultants to work on strategies investing in alternative assets, it said in a statement last week.

The consultants appointed will be responsible for formulating the fund’s medium- and long-term investment strategies in alternatives. However, GPIF did not disclose the size of the strategy and other details. The application is open until March 28.

According to a report by Asia Asset Management, the pension fund is looking for a single consultant who is “versatile enough” to handle various asset classes in GPIF’s alternatives portfolio which includes private equity, infrastructure and real estate. If the search fails, the fund will then select more than one consultant.

GPIF is the world’s largest pension fund, and it aims to allocate 5 per cent of its total assets to alternative investments. But as of end 2018, alternative investments only accounted for 0.21 per cent of its total assets.

In 2018, GPIF had selected various external consultants to manage its investment mandates. Early last year, it awarded its global infrastructure investment mandate to UK-based private equity firm Pantheon and StepStone Infrastructure & Real Assets, while Sumitomo Mitsui Asset Management was selected as the gatekeeper for the mandate.

As of December 2018, almost 50 per cent of GPIF’s allocations are still in foreign and domestic equities. The fund posted a record $136.7 billion quarterly loss on investments for its third quarter, down 9.06 per cent form the same period in 2017. GPIF recorded an annualised return of 2.73 per cent since its inception in 2001.

Also Read:

Japanese pension fund GPIF continues push to pick foreign assets

Japan’s GPIF ropes in Pantheon as new manager for global infra mandate

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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.