Japan’s Government Pension Investment Fund (GPIF) is picking domestic alternative asset funds on its own for the first time, putting its cash in real estate and infrastructure such as data centers.
The retirement fund, which is one of the world’s largest, will invest ¥50 billion ($340 million) in total, comprising ¥40 billion for an infrastructure fund and ¥10 billion for real estate, according to documents recently published by GPIF. That’s a shift from its previous practice of entrusting asset managers to choose domestic alternative funds on its behalf.
Those are tiny deals for the fund, which oversees about ¥260 trillion in assets. GPIF also caps alternative investments at 5% of total assets, although the most recent ratio is still far from that limit, at 1.6% as of the end of June. The firm already invests in overseas alternative asset funds on its own.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.