Fundraising

Japan pension giant awards second infrastructure mandate

Chikyoren, one of the country's ‘big four’ public pensions, had already selected JPMorgan to manage its exposure to the asset class.

-

Tokyo-headquartered Mitsubishi UFJ Trust & Banking Corporation has been awarded a mandate by the Pension Fund Association for Local Government Officials, known locally as Chikyoren, to look after the institution's infrastructure investments. 

The appointment marks the second mandate issued by the pension fund in a month. In July, the fund had selected JPMorgan Asset Management to manage its exposure to the asset class. 

MUTB, a wholly owned subsidiary of Mitsubishi UFJ Financial Group, is one of the country’s largest trust banks. With around 250 investment professionals in its asset management team, the business oversees $350 billion in assets, as at March 2016.   

Chikyoren didn’t disclose any further information on the selection process and it is unclear how much the pension is looking to invest in the asset class. 

Japan's “big four” public pension funds, which comprise Chikyoren, Government Pension Investment Fund, Pension Fund Association and Japan Post Bank and Insurance, are currently looking to crank up their exposure to alternative assets, including infrastructure. 

Japanese insurance companies are following a similar trend. In addition to making fund commitments, Dai-ichi Life Insurance this month teamed up with Mizuho Financial Group to set up a JPY100 billion global infrastructure debt fund, targeting investment opportunities in overseas investment-grade markets.