GPIF to invest in infrastructure assets
In a move illustrating the growing pressure on Asian pension funds to adopt alternative investment strategies in their portfolios, Japan’s US$1.3 trillion Government Pension Investment Fund, the world’s largest pension fund, has announced plans to invest up to US$2.7 billion in infrastructure during the next five years in partnership with the Development Bank of Japan and Canada’s Ontario Municipal Employees Retirement System.
The co-investment agreement framework will allow GPIF and DBJ to participate in a range of investment opportunities sourced and managed by OMERS through its various investment arms. GPIF may cut its foreign debt holdings in an effort to raise capital for the infrastructure investment.
While the deal in and of itself is not enough to have a significant effect on the market, Ayako Sera, a Toky