GPIF publishes annual report, MFS Investment sparkles

The Government Pension Investment Fund’s annual report for the year to 31 March 2015 appeared on 18 September and is here.

Much of what appears in the publication is already known – not least because the report for the first 2015/16 quarter ending 30 June has already been published [see archive 29 August] and necessarily covered the Fund’s financial position at the close of the previous term.

However it is only in its annual statement that GPIF gives details of the fund managers it is using for each part of its portfolio.

Pages 49 and 50 (by page counter at top, 45 and 46 by page numbers at bottom) give the 3- and 5-year performances of fund management firms in each asset class for which they hold  mandates from the Fund.

The standout appears to be MFS Investment Management KK with a sparkling 2.8% over benchmark in actively managed international equities.

Additions to the roster over the year are:

  • Actively managed domestic bonds  – a new mandate of 867.5 billion yen for the inhouse team which already managers the bulk of the passively managed Japanese bond portfolio;
  • Actively managed domestic equity – new mandates to Schroder Investment Management, Daiwa SB Investments and Nomura Asset Management for 232bn yen, 135,5bn yen and 22bn yen respectively;
  • Actively managed international equities – a new mandate for 283.4bn yen to UBS Global Asset Management.

The report does not mention a move into private equity investments that the Wall Street Journal reported on 16 September the Fund had decided in June would kick off by its making a US$500 million commitment to a channel operated by the International Finance Corporation subsidiary of the World Bank.

It is not clear from the wording of the newspaper’s report, which states only that GPIF has ‘struck a partnership’ with the IFC, just what milestone the arrangement has passed since it was first reported by the Nikkei in March last year but it does note that the fees on the tie-up have been reduced since Hiromichi Mizuno joined the Fund as Chief Investment Officer.

© 2015 Japan Pensions Industry Database/Jo McBride. Reporting on, and analysis of, the secretive business of Japanese institutional investment takes commitment, money and time. This blog is one of the products of such commitment. It may nonetheless be reproduced or used as a source without charge so long as (but only so long as) the use is credited to www.ijapicap.com.

This blog would not exist without the help and humour of Diane Stormont, 1959-2012

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