Wellington wins foreign equity mandate from Japan’s GPIF

07 January 2014   Category: News, Asia, Japan   By Maya Ando

Japan’s Government Pension Investment Fund (GPIF), the world’s largest pension fund with AUM of 132.92 trillion yen (US$1.27 trillion) as of end of 2Q 2013, has appointed Wellington International Management Company to manage a portion of its active foreign equities. The firm is the eighth manager to have received an active foreign equities mandate from the GPIF in addition to Amundi Japan, MFS Investment Management, Natixis Asset Management, Nikko Asset Management Japan, BNY Mellon Asset Management, Mizuho Asset Management and Mitsubishi UFJ Trust and Banking Corporation (two mandates).

The amount of the mandate was not disclosed, however, the fund did reveal that the portion allocated to foreign equities would be about 10% of the total reserve, or 1.25 trillion yen.  Wellington International Management, a subsidiary of Boston-based Wellington Management, opened its Japan office in Tokyo in 1997. The firm had received 31 billion yen worth of mandates from public pensions in total and 711 billion yen from private pension funds as of September 2013, according to a report submitted to the Japan Investment Advisors Association from Wellington International Management.

GPIF has been contemplating increasing its overseas capital allocations for some time and has expressed an interest in emerging markets, particularly in Southeast Asia, as it seeks higher returns to address the swelling outflows incurred by Japan’s increasingly ageing demographic.