Friday, 28th April 2017
Today, GPIF – Government Pension Investment Fund, Japan (AUM : 144.8 Trillion JPY / 1.24 Trillion USD) has released English version of presentation with the latest status of its guidelines and strategies.
Asset Manager Registration System for Alternative Assets
<English Press Release>
<English Presentation Slides>
The table of content of the presentation slides are as follow:
GPIF Alternative investments and Approach
Overview of the Request for Proposal (“RFP”)
Roles and Duties of Asset Managers
As stated in our previous newsletter, GPIF focuses on Gatekeepers / Fund of Funds at their first stage.
At an orientation meeting, GPIF developed an in-depth overview for requirement for fund managers. They defined current AUM of the company group from domestic and foreign pension funds should be 100 billion JPY (approx.900 million USD) or more, they also require the manager should have a five-year-track record and a current AUM of 30 billion JPY (approx. 270 million USD) on proposed asset class.
As for investment in real estate, it is striking that GPIF separates its mandate in Domestic (Japan) and Global separately Global (North America, Europe and Others). This translates that it would prove the way for greater change in investment approach among Japanese institutional investors. The funds is mainly focused on core type and the targeted region is divided in Japan and developed countries excluding Japan. The funds are limited to unlisted ones and no leverage to pursue higher returns in Fund of Funds.
There are some remarkable points to imagine how the GPIF`s approach will impact the industry and market.
For example, Others and Japan are separated by mandate level. Aside from North America and Europe, countries with established core real estate markets are few – Japan, Australia, Singapore and Hong Kong which is APAC. However, looking at existing core Pan-Asia funds with a track record, quite a large portion of Japan asset is constantly included in portfolios. If Japan isn’t incorporated, choices for “Others” may be limited except funds dedicated to Australia.
As we see new Japanese investors are encouraged to move in global real estate investment, and GPIF`s approach will be a key model for them. Thus, Japanese capitals to be deployed will be a significant.
It may be an interesting room to consider “tailored global fund excluding Japan for Japanese investors”, and perhaps it is quite worth to consider.
Asterisk’s upcoming seminars for Japanese institutional investors:
Real estate market cycles and positions in global market (June 2017)
At what timing are Japanese investors are starting overseas real estate investment?
Current market positions in cycles and forecast. (US, UK, EU, AUS, Japan and other regions)
Integrated resorts and hospitality real estate investment in Japan (July 2017)
“Opportunities of luxury hospitality real estate with Integrated Resort”
“New real estate investment sectors created by Integrated Resort”
Global hospitality investment (July 2017, tentative)
* If interested in speaking at one of our seminars, please feel free to contact us for further information. We welcome suggestions from fund managers, legal & tax specialists, integrated resorts operators, developers, and hospitality specialists.
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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