Japanese pension fund appoints 13 managers

07 February 2014   Category: News, Asia, Global, USA, Europe   By Maya Ando

The Federation of National Public Service Personal Mutual Aid Association, also known by its Japanese acronym KKR, has appointed 13 fund managers; the mandates are all for actively managed strategies.

The 13 firms selected for the global mandates are AllianceBernstein, Allianz Global Investors, Wellington International Management Pte, MFS Investment Management, Goldman Sachs Asset Management, JP Morgan Asset Management, Schroders, State Street Global Advisors, Tokio Marine Asset Management, BlackRock, Mitsubishi UFJ Trust and Banking, Morgan Stanley Investment Management and UBS Global Asset Management.

In addition to the appointments, KKR also intends to add several active managers to manage domestic equities. Applications for these mandates will close on February 19, according to the fund. KKR, with about 20 million government employees on its roster, reported assets of 7.57 trillion yen (US$75.7 billion) as of end March 2013.

Back in 2009, the fund adopted an LDI strategy and at that time set an annual return target of 1.6% for the next 11 years. The actual return for the last fiscal year of 1.96% exceeded this target, producing handsome profits of 148 billion yen. Allocations to domestic bonds account for 80% of its portfolio while domestic and global equities each take up five per cent of assets. In the last financial year, 13 managers were allocated a total of 1.17 trillion yen. The 13 managers appointed in January will collectively manage 71.8 billion yen in active foreign equities while 124 billion yen will be allocated to active domestic equities for the fiscal year 2014.