Japan Pension Hires Four Managers to Oversee Equities in Wake of Portfolio Overhaul


Japan’s Government Pension Investment Fund in 2014 decided to make major changes to its portfolio, including a doubling of its equity allocation from 25 to 50 percent.

The pension fund this week hired four external managers to oversee portions of the fund’s equity portfolio.

From Bloomberg:

The $1.1 trillion Government Pension Investment Fund picked Schroder Investment Management Ltd., Daiwa SB Investments Ltd. and Nomura Asset Management Co. to oversee Japanese traditional active investments, and UBS Global Asset Management for foreign active holdings, it said today. GPIF didn’t say how much money the funds would manage.


“Passive stock holdings had become extremely high, so it looks like they’re trying to adjust this,” said Kenji Shiomura, a Tokyo-based senior strategist at Daiwa Securities Group Inc. “Also, there are limits to how much some of their existing managers, like their engagement fund, can oversee. As they increase stocks, they’re trying to avoid a situation where their share of passive investments increases further.”

GPIF had 14 active Japanese equity funds managing a total 2.6 trillion yen as of March 31, compared with 10 passive funds with 18.3 trillion yen. For foreign stocks, 15 funds managed 2.1 trillion yen in active investments, compared with six funds overseeing 17.6 trillion yen in passive strategies.

GPIF manages $1.1 trillion in assets, and is the largest pension fund in the world.


Photo by Ville Miettinen via FLickr CC License