Japan’s Chikyoren awards third overseas infra mandate

Tokio Marine will join two other mandated managers, JPMorgan and Mitsubishi UFJ, to help the $185bn pension fund manage offshore infrastructure investments.

The Pension Fund Association for Local Government Officials, known locally as Chikyoren, has awarded a mandate for overseas infrastructure investments to Tokio Marine Asset Management

The appointment marks the third mandate issued by the pension fund for the asset class. Last summer, Chikyoren selected JPMorgan Asset Management and Mitsubishi UFJ Trust & Banking Corporation to manage a portion of the fund’s allocation in global infrastructure investments. 

Tokio Marine describes itself as a “gatekeeper” for Japanese pension funds and other institutional investors, as it selects and invests in infrastructure funds, Takako Koizumi, an investment director at the firm, said in an interview with Infrastructure Investor in April. 

The firm is especially keen on “more creative” approaches – such as value-add strategies – that allow managers to source assets in less competitive markets, given high prices in the core segment, she added. The Tokyo-based asset manager had $56 billion in assets under management as of this March. 

Chikyoren did not disclose the size of the mandate and its allocation to the asset class. Tokio Marine declined to comment on the Chikyoren mandate. 

One of Japan’s “big four” pension funds, Chikyoren manages about $185 billion of capital for around 3 million local civil servants. It set a 5 percent ceiling for its holdings in alternative investments in March.