Japan's Pension Fund Association for Local Government Officials, or Chikyoren, hired UBS Asset Management and J.P. Morgan Asset Management to manage the ¥21.2 trillion ($210.8 billion), Tokyo-based pension fund's first announced allocations to global real estate and infrastructure, respectively.
A Chikyoren spokesman declined to provide details for either the size of the allocations or whether they are focused on publicly listed real estate and infrastructure or unlisted assets.
A UBS Asset Management spokesman declined to comment; a J.P. Morgan Asset Management spokesman confirmed that Chikyoren had hired JPMAM.
The allocations are likely Chikyoren's first for global real estate and global infrastructure, as the pension fund issued an RFP for a custodian to handle alternatives investments only at the end of 2015.
In the interim, Chikyoren announced the hiring of two domestic real estate managers: Resona Bank, in March, and Nomura Asset Management, in June.
Last year, Chikyoren was among a handful of public funds in Japan to sign on to the same asset allocation targets the world's biggest pension fund — the ¥139.8 trillion Government Pension Investment Fund, Tokyo — adopted in October 2014: 35% domestic bonds, 25% each domestic and international equities and 15% global bonds.
The target for alternatives — to be included in those four main asset classes, depending on the nature of the investment, rather than as a separate allocation — was set at an initial 5%.
Prior to late 2014, the portfolios of Japan's big public funds were all dominated by allocations of 60% or more to Japanese government bonds.