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GPIF seeks alternatives consultants

Japan’s largest pension plan has issued an RFP for investment consultants to advise on its underweight alternatives portfolio.

Japan’s $1.25 trillion Government Pension Investment Fund is looking for investment consultants to advise on its underweight allocation to alternatives.

The pension fund is targeting a 5 percent allocation to alternatives. However as at the end of March 2016, it had only invested about 0.06 percent in alternatives, with 81.4 billion yen ($776 million; €711 million) in infrastructure and 1.9 billion yen in private equity through co-investments with external institutional investors, the fund said in a report.

To help Japan’s largest pension fund get up to weight GPIF is seeking external advice and has issued a request for proposal, in Japanese, on its website with applications due by 14 November 2016. 

The consultant selection will be done through a competitive bidding process, and the successful advisors will have a mandate lasting until 31 March 2020, according to the RFP.

In its annual report published on 29 July, GPIF reported it lost 5.3 trillion yen in fiscal 2015, driven by disappointing returns from its holdings of domestic equities, which fell 10.8 percent.