Chikyoren names new manager for domestic PE

The Japanese pension fund has selected Sumitomo Mitsui Trust Bank as its second external manager to handle its local private equity mandate.

Japan’s Pension Fund Association for Local Government Officials, known locally as Chikyoren, has hired Sumitomo Mitsui Trust Bank (SMTB) as its newest manager for domestic private equity.

SMTB joins Mitsubishi UFJ Trust and Banking Corporation to manage the pension’s domestic private equity allocation, according to an official statement. SMTB is the largest trust bank in Japan and manages total assets of ¥50.9 trillion yen ($450 billion; €384 billion) as of March 31, 2017. The bank has previously made commitments to private equity funds managed by CVC Capital Partners, TA Associates and Equistone Partners Europe, according to PEI data.

The $185 billion pension fund can put as much as 5 percent or $9.25 billion of its total assets into alternatives. It has yet to disclose the percentage of its assets it will invest in private equity.

In July last year, Chikyoren issued a call for applications for domestic and overseas private equity managers, a year after releasing RFPs for real estate and infrastructure.

Chikyoren has so far selected UBS Asset Management and Invesco Asset Management (Japan) as managers for global real estate. Meanwhile JPMorgan Asset Management and Tokio Marine Asset Management were awarded mandates for global infrastructure.