Japan’s ¥139 trillion ($1.38 trillion) Government Pension Investment Fund Friday announced it is looking to select one or more passive Japanese equity indexes that incorporate environment, social and governance factors as a means of enhancing long-term returns and lowering long-term risks.
Shinichiro Mori, a Tokyo-based GPIF spokesman, said in an e-mail that GPIF is accepting proposals for one or more Japan equity ESG index providers.
After making selections that meet the pension fund’s needs, “we will hire passive managers to invest in accordance with these indices,” he said.
The Tokyo-based fund called for interested parties to submit proposals for consideration by Sept. 30. Inquiries should be sent to [email protected].
As of the March 31, 2015, close of the GPIF’s prior fiscal year, ¥27.5 trillion of the fund’s ¥137.5 trillion in total assets was invested in passive domestic equity funds.
GPIF's investment team has yet to decide "what portion of our domestic equities" will be shifted into ESG-focused indexes, said Mr. Mori, noting that "it depends on their capacity."