Japan’s GPIF to create new alternatives portfolio

18 August 2014   Category: News, Asia, Global, Japan   By Maya Ando

Japan’s Government Pension Investment Fund (GPIF), the world’s largest pension manager with approximately 126.5 trillion yen (US$1.23 trillion) in assets, is reportedly planning to create a new portfolio category for investing in alternative asset classes including infrastructure, real estate and private equity.

According to Jiji Press, discussions are in their final stages over how much the mega fund will allocate to the new portfolio category, although it is likely to be about 5% of total assets.

In the wake of a recovery in Japan’s domestic equity market, the GPIF is also preparing to boost its allocation to the local stock market from its current quota of 12% to 20%.

Meanwhile, the GPIF has also been reshuffling managers for each asset class in order to generate alpha returns, and will also review each manager’s performance annually.

GPIF said at a contract compliance meeting held on June 30 this year that the fund has been monitoring performances over the past five years, to see if it is necessary to replace managers or continuously mandate assets.