<article>Japan&#8217;s $185-billion state pension fund Chikyoren or <a style="color: #000080;" href="http://www.chikyoren.or.jp/english/pal.html" target="_blank">Pension Fund Association for Local Government Officials</a> has set a 5 per cent ceiling for its holdings in alternative assets.</article>

Japan&#8217;s $185-billion state pension fund Chikyoren or <a style="color: #000080;" href="http://www.chikyoren.or.jp/english/pal.html" target="_blank">Pension Fund Association for Local Government Officials</a> has set a 5 per cent ceiling for its holdings in alternative assets.
Its exposure to alternatives, however, will not be separate but will be part of its allocations to equities and bonds, both domestic and offshore, the Private Equity International reported.
The 5 per cent target would amount to $9.25 billion of Chikyoren&#8217;s $185 billion of assets as of March 31, 2015.
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As on 2015, Chikyoren had a 43.65 per cent exposure to domestic bonds, followed by 22.32 per cent to domestic equities, 11.96 per cent to foreign bonds, 17.54 per cent to foreign equities, and 4.54 per cent to short-term assets, the PE International added.
Tagged as one of Japan&#8217;s &#8220;big four&#8221; pension funds, it issued requests for proposal for private equity in July 2016, almost a year after selecting managers for real estate and infrastructure.
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Chickyoren manages assets for around three million local civil servants. The fund tapped UBS Asset Management as its international manager for real estate, while JP Morgan Asset Management is its first manager for international infrastructure.
Among the pension fund&#8217;s recent mandates for real estate include Resona Bank, Nomura Asset Management, and Daiwa Fund Consulting.
Chikyoren is said to be following the lead of &#8220;big brother&#8221; <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=GPIF" target="_blank">Government Pension Investment Fund</a> or GPIF, which set in 2014 a 5 per cent ceiling for its holdings in alternative assets.
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Japan's $185-billion state pension fund Chikyoren has set a 5 per cent ceiling for its holdings in alternative assets.

Japanese pension fund Chikyoren places 5% limit for alternative assets

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Japanese pension fund Chikyoren places 5% limit for alternative assets

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