whale splash

18th September 2015

Japan`s top 4 largest public-sector investors, dubbed the four whales, have been of much interest for fund managers as two of the investors, GPIF and Chikyoren, have announced their plans to invest in real estate. Much of the alternative investment industries are now closely monitoring the last two investor in anticipation of their next move.GPIF, the biggest of the 4 investors, has a portfolio worth 1.15 tn USD and announced its plan to invest in alternative as of 2014. July 2015, Chikyoren, which holds 176 bn USD, requested for product information from fund managers.

As part of government efforts to unify public pensions, the four whales will work towards the model portfolio below.

Model portfolio – Target allocation for all four investors

Domestic Fixed Income 35%
Domestic Equity 25%
Overseas Fixed Income 15%
Overseas Equity 25%
Short term Assets –

Below are the profiles of Japan’s largest public investors

Government Pension Investment Fund (GPIF)
137 trillion JPY (over 1.15 trillion USD)

Current allocation (30th June 2015)
Domestic Fixed Income 37.95%
Domestic Equity 23.39%
Overseas Fixed Income 13.08%
Overseas Equity 22.32%
Short term Assets 3.27%

Pension Fund Association for Local Government Officials (Chikyoren)
21.1 trillion JPY (176 billion USD)

Current allocation (March 31st 2015)
Domestic Fixed Income 50.5%
Domestic Equity 21.6%
Overseas Fixed Income 11.4%
Overseas Equity 15.1%
Short term Assets 1.4%

Federation of National Public Service Personnel Mutual Aid Service (KKR)
7.8 trillion JPY (65 billion USD)

Current allocation (March 31st 2015)
Domestic Fixed Income 71.4%
Domestic Equity 13.0%
Overseas Fixed Income 2.7%
Overseas Equity 12.9

Private School Mutual Aid
4.2trillion JPY (35 billion USD)

Current allocation (March 31st 2015)
Domestic Fixed Income 50.7%
Domestic Equity 15.3%
Overseas Fixed Income 13.4%
Overseas Equity 14.1%
Short term Assets 6.5%

The last two investors, Private School Mutual Aid, KKR, hold portfolios that is worth a sum of 12 trillion JPY (100 billion USD). With GPIF, the biggest whale leading the way, and already another whale, Chikyoren, following, there have been predictions that the last two whales will soon head down the same path. There is an increasing number of fund managers who are whale watching, and many believe it is now time to take action and enter the Japanese market as the movements of these large whales may have a significant impact on other Japanese pensions, financial institutions and insurance companies.

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For further details about this news and our services please contact : Yukihiko Ito (yuki@asteriskrealty.jp) / Kat Hoang (k.hoang@asteriskrealty.jp)

About Asterisk Realty & Placement Agency
Asterisk is a pioneer private fund placement agency for global real estate 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.

Asterisk Inc.,
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Telephone: 03-3263-9909
Email : info@japanplacementagent.com
Websitehttps://japanplacementagent.com/en/
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