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.