The pension bureau of Japan’s Ministry of Health, Labor and Welfare on Monday met to consider a proposal to allow the country’s Government Pension Investment Fund, Tokyo, to engage in alternative investments such as infrastructure or private equity as a limited partner in general partner-limited partner fund structures.
The proposal included a number of stipulations aimed at ensuring the giant fund — the world’s biggest pension fund with an investment portfolio valued at ¥139.8 trillion ($1.32 trillion) as of Dec. 31 — wouldn’t become a majority owner of any fund investment, wouldn’t directly own real estate and keep the GPIF’s investment committee adequately informed about its LP-related exposures.
A GPIF spokesman said following approval by the ministry, an amendment to the GPIF’s governing statutes will have to be approved by Japan’s cabinet. He said that process is likely to take “several months.”
