GPIF tiptoes towards PE, infrastructure and real estate

The first alternative assets to be included in the Government Pensions Investment Fund’s portfolio will be structured as fund of funds and designed and managed separately for it alone. Those investing mainly in listed funds will be excluded from consideration.

Asset management firms with appropriate capabilities now being invited to register their interest with GPIF for a review process which will begin on 1 June.

The first four fund types sought are those investing internationally in private equity, infrastructure and real estate plus those focused on real estate in Japan. The preference among the last three is for those aimed at generating stable income.

Firms who wish to attend a 17 April orientation meeting about the process should register by emailing by 10 a.m. on 14 April with the name of the company and the attendees.

Managers who are not authorised to do business in (and are thus not regulated by) Japan must apply jointly with a local partner firm.

GPIF is also not closing the door on asset managers which do not meet its criteria but says they must supply detailed information such as performance data.

The first four areas of interest are as follows (note that the ‘global’ requirement can include products investing in specific geographical regions) ;

Private equity – diversified global funds pursuing various strategies.

Infrastructure – global funds investing chiefly in developed countries, including brownfield projects and focused mainly on generating stable income.

Real estate – global funds investing mainly in developed countries and focused mainly on generating stable income.

Real estate – diversified domestic vehicles focused mainly on generating stable income.

© 2017 Japan Pensions Industry Database/Jo McBride. Reporting on, and analysis of, the secretive business of Japanese institutional investment takes big commitments of 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 and a link provided to the original text on that site.

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

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