Japan’s Government Pension Investment Fund (GPIF) said today that it has picked Pantheon as global infrastructure manager, in the latest move to invest in core infrastructure assets.
The world’s biggest pension fund also selected Nomura Asset Management as a gatekeeper to oversee activities of fund-of- infrastructure fund managers’ investment activities.
The move is the USD 1.3trn pension second since it started receiving applications for the mandates last year. In January, it selected StepStone Infrastructure & Real Assets as global infrastructure investment manager and Sumitomo Mitsui Asset Management as a gatekeeper.
GPIF opened registration for interested fund managers who met GPIF’s criteria in April. It is seeking to increase diversified investments mainly in core, brownfield infrastructure funds in developed counties.
The pension fund has been a latecomer to infrastructure investment. It kicked off its program four years ago in a tieup with Canada’s Ontario Municipal Employees Retirement System (OMERS).
Under its mid-term business plan, GPIF can invest up to 5% of its AUM in alternative investments including infrastructure, private equity and real estate, but has been slow to increase its allocation to date. The ratio stands at 0.1%.
GPIF did not have a specific target for alternative assets prior to the announcement of the 5% target in June 2016.