Japan's Federation of National Public Service Personnel Mutual Aid Associations, the ¥7.8 trillion ($65 billion), Tokyo-based public pension fund known by its acronym KKR, is searching for active global bond managers.
Japanese language documents on KKR's website said managers interested in being considered for those active bond mandates can submit application materials Oct. 13-14.
A KKR spokesman declined to provide details regarding the scale of the active global bond allocations KKR is looking to award, or the timing of final selections.
The spokesman likewise declined to say how much of KKR's targeted allocation to global bonds will be actively managed, and what portion will be passively managed.
As of the March 31 close of KKR's latest fiscal year, all of the pension fund's allocation to global bonds was passively managed. The pension fund's annual report showed an allocation of ¥211.8 billion to overseas bonds, or roughly 2.7% of the overall portfolio.
However, in February 2015, the pension fund — together with a handful of other large public funds in Japan — adopted new, common targets that called for a massive shift in allocations to higher-risk asset classes from Japanese government bonds.
In KKR's case, the widely adopted target allocation of 15% for global bonds would mark a sharp increase from the pension fund's previous target of 4%.