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 (GPIF) 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 ¥1.9 billion in private equity, and ¥81.4 billion in infrastructure 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 (RFP), in Japanese, on its website with applications due by 5pm, Japan Standard Time on 14 November 2016. Interested candidates can obtain explanatory materials by emailing choutatsu-t08@gpif.go.jp.

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 request for proposal posted on the GPIF website.

In its annual report published on 29 July, GPIF reported it lost ¥5.3 trillion ($52 billion; €47 billion) in fiscal 2015, driven by disappointing returns from its holdings of domestic equities, which fell 10.8 percent.