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May 2022
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May 2022
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Japan’s Chikyoren hires Nomura, Tokio Marine for alternative mandates

By Hui Ching-hoo   
May 6, 2021

Japan’s Pension Fund Association for Local Government Officials has hired Nomura Asset Management and Tokio Marine Asset Management for two separate alternative investment mandates of unspecified value.

Nomura will manage a private debt mandate and Tokio Marine will oversee a domestic infrastructure mandate, the pension fund, Japan’s second largest and known locally as Chikyoren, says in an April 29 statement uploaded to its website this week.

Tokio Marine will also be the custodian of the infrastructure mandate while New York-based alternatives manager Angelo Gordon & Co has been appointed custodian for the private debt mandate.

This is Chikyoren’s fourth private debt mandate since its first tender in 2019, and the second one awarded to Nomura. The other two are overseen by Barings Asset Management (Japan) and UK bond manager BlueBay Asset Management.

Chikyoren began to invest in infrastructure in 2015 and has since outsourced several domestic and foreign mandates to Japanese and international managers, including Mitsubishi UFJ Trust and Banking Corporation, and UBS Asset Management.

The pension fund’s other alternative investments include real estate, with several property mandates awarded over the years. Most recently, in the first quarter of this year, it hired UK property manager PGIM Inc. and US manager Legg Mason Asset Management for two separate global real estate mandates.

Chikyoren had 12.4 trillion yen (US$112.8 billion) of assets as of December 2020, including 99.2 billion yen allocated to alternatives.