Japan’s Chikyoren appoints new infrastructure manager

21 August 2017   Category: News, Asia, Global, Japan   By Asia Asset Management

Japan's Pension Fund Association for Local Government Officials, known as Chikyoren, has named a new manager for its overseas infrastructure mandate as part of efforts to further diversify its foreign portfolio and boost alternative investments.

Mizuho Global Alternative Investments, the alternative investment vehicle of Mizuho Financial Group, has been selected to oversee the pension fund’s overseas infrastructure investment, Chikyoren says in a statement on August 11.

The fund does not publish details of the funding provided for its mandates. 

Chikyoren has to date appointed four managers – three domestic and one foreign – to handle the foreign infrastructure mandate.

It hired Tokio Marine Asset Management three weeks ago, and last year, appointed J.P. Morgan Asset Management and Mitsubishi UFJ Trust and Banking Corporation.

Overall, Chikyoren has hired six fund managers for its domestic private equity, overseas infrastructure, overseas real estate, and domestic fixed income mandates, thus far this year.  

Last year, it hired 14 managers, including Goldman Sachs Asset Management, DIAM Asset Management, Fidelity Investments, and Prudential Investment Management Japan, to run its plain vanilla and alternative mandates.  

According to Chikyoren’s latest annual report, the pension fund aims to increase the weighting of its alternative investments – including private equity, infrastructure, and real estate – to as much as 5% of total AUM in the long term, from just 0.1% at the end of 2016.

Chikyoren had total investable assets of 10.96 trillion yen (US$100.2 billion) as at the end of 2016.