Japan’s Chikyoren hires two asset managers for foreign alternatives

Japan’s Pension Fund Association for Local Government Officials, also known as Chikyoren, has hired two asset managers to handle its foreign alternative mandates.

Chikyoren awarded the real estate mandate to Invesco Asset Management (Japan), and the infrastructure mandate to Tokio Marine Asset Management.

According to Asia Asset Management, the pension fund aims to increase its alternative investments — including private equity, infrastructure and real estate — to approximately 5 percent of total asset under management in the long term.

The fund posted an investment return of 5.6 percent, or $4.92 billion, in 2016, up from 1.68 percent in the previous year.