Japan’s state pension fund Chikyoren or Pension Fund Association for Local Government Officials, has concluded its search for domestic and overseas private equity fund managers, tapping Asia asset management firms UBS and JP Morgan.
The $185 billion Japanese pension fund has chosen UBS and JP Morgan to manage its global real estate, and infrastructure investment, respectively.
The decision came a month after Chikyoren hired Nomura Asset Management to handle a domestic real estate mandate. Nomura along with Japanese bank Resona, took the same roles in the pension fund’s RFP for real estate in July last year.
Japanese investors are likely to invest in global real estate as a result of Chikyoren’s latest decisions, reports said.
Tagged as one of Japan’s “Big Four” public pension funds, Chikyoren has yet to disclose the percentage of assets it wants to allocate to property investment.
Placement agent Asterisk Realty recently reported that Chikyoren might set a 5 per cent cap on alternative investments, similar to the allocation target adopted by Japan’s largest pension fund, GPIF.
Based on Chikyoren’s latest asset allocation report last December 31, 2015, it allotted about 47.56 per cent of its holdings to domestic bonds, 22.93 per cent to Japanese stocks, 11.94 per cent to foreign bonds, 15.92 per cent to overseas equities, and 1.65 per cent to short-term assets.