Japan's ¥177.7 trillion ($1.63 trillion) Government Pension Investment Fund is calling on managers of core domestic real estate strategies, in either separate account or commingled fund vehicles, to register with its manager entry system, used by the Tokyo-based fund to vet and select managers for allocations.
The request for proposals posted on GPIF's website Tuesday suggests the national pension system — four years after an initial move into alternatives focused on managers of private equity, real estate and infrastructure fund-of-funds strategies — is looking for the first time to directly hire a manager without a fund-of-funds intermediary.
The RFP said GPIF is not looking for managers of real estate investment trusts.
The RFP left open the possibility that, going forward, GPIF may consider individual managers for other alternative segments.
GPIF said there is no deadline for managers interested in being considered for core domestic real estate allocations to provide their information.
GPIF will hold an online briefing session about the RFP at 1:30 p.m. Tokyo time April 28, and called on applicants to provide the names of up to two individuals wishing to participate in the session by 5 p.m. April 26.
In late February, GPIF made its latest alternatives allocation, hiring CBRE Global Investment Partners to run a core fund-of-funds global real estate allocation.
As of Dec. 31, GPIF reported that its alternatives exposure came to only two-thirds of a percentage point of its ¥177.7 trillion portfolio, or roughly $11 billion. The fund's strategic asset allocation targets allow it to invest up to 5% of its portfolio in alternatives.