Japan’s second-largest public pension fund extends its alternative arms to private debt

Chikyoren (Pension Fund Association for Local Government Office, or PAL), the second-largest public pension funds in Japan with $217 billion in assets under management, has added private debt for its RFP for alternative investment managers.

There are now four asset classes in alternative investment for Chikyoren’s RFP for fund managers, which includes infrastructure, real estate, private equity and private debt.

Chikyoren was the first Japanese public pension fund to announce an RFP for alternative investment. Other public pensions and Japanese institutional investors are expected to pursue this approach.

Since 2016, Chikyoren has selected the following fund managers for alternative assets and strategies:

Infrastructure

JP Morgan Asset Management (overseas infrastructure)

Mitsubishi UFJ Trust Bank (overseas infrastructure)

Tokio Marine Asset Management (overseas infrastructure)

Mizuho Global Alternative Investments (overseas infrastructure)

Mitsubishi Corporation Asset Management (domestic infrastructure)

Real Estate

Resona Bank (domestic real estate)

Nomura Asset Management (domestic real estate)

UBS Asset Management (overseas real estate)

Daiwa Fund Consulting (domestic real estate)

Invesco Asset Management (overseas real estate)

Private Equity

Mitsubishi UFJ Trust Bank (domestic private equity)

SMTB (domestic private equity)