According to GPIF’s latest discussion minutes,GPIF is gradually exploring non-investment grade assets, as well as co-investment to alternative assets with global investors.

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Wednesday, March 14th 2018

Asterisk summarise some notable topics from GPIF’s latest discussion minutes by its management committee released on March 13th.

 

Topics and summary

 

LPS scheme – co-investment to alternative assets with global investors

GPIF is establishing its inhouse platforms for LPS (Limited Partnership) investment to alternative assets, since the Japanese government reformed GPIF Law to enable GPIF to invest to LPS in last September. The minutes mention LPS investments would benefit GPIF by enabling them to co-invest in high quality assets efficiently with global pension funds as well as save gatekeeper costs.

 

*Before the reform in September, GPIF was restricted to invest to specific/individual assets through non-listed structure, so its investment method to alternative assets was limited to mutual fund structure. It was causing higher costs and limiting opportunities, especially in alternative investment.

 

Bank loans – stepping into non-investment grade assets

The minutes mention that GPIF has started investment to bank loans, with an aim to diversify its overseas fixed income active strategies. The minutes also mentioned investment to bank loans meaning GPIF is stepping into non-investment grade assets.

 

Performance fee for fund managers

The minutes mentioned that GPIF`s new approach to adopt performance fee for fund managers, in a course to enhance alignment with fund managers.

 

Asterisk’s Comment

GPIF is gradually proceeding its alternative investment, and have announced several mandates through FoF investments to real estate and infrastructure.  The market is expecting that their next step – FoF investment to overseas real estate will be announced soon.

After that announcement, it is expected that GPIF will upgrade its investment structures to include investments to specific funds and strategies, also co-investment with global pension funds and institutional investors.

 

About Asterisk Realty & Placement Agency

Asterisk is a private fund placement agency for global alternative in Japan. Through our unique and extensive network of Japanese investors, we support global fund managers in accessing Japanese and Asian institutional investors (pensions, financial institutions, real estate developers, other business companies, etc.).

We provide access and strategies for overseas fund managers to bridge the gap between them and Japanese investors.

 

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