June 12, 2015

GPIF Said Major Launch Of Alternative Investment Program In 2016

In an interview with the CEO and CIO of GPIF, Nikkei reported today:
 CIO Hiromichi Mizuno, in his first interview with a Japanese media outlet since taking office in January, indicated that the GPIF will step up investment in alternative assets.

     The fund will increase real estate, infrastructure and unlisted stocks to as much as 5% of total assets. "We are hiring and will assign four or so managers to each" category, Mizuno said.

     With its current quarters increasingly cramped, the GPIF will relocate to a bigger office in Tokyo's Minato Ward. The new alternative-asset investment team will be ready to roll after the move and get into full swing as soon as next year.

     But Mitani noted that the fund is not ready to aggressively increase investment in such assets, citing the costs involved. Assets like real estate must be securitized rather than simply purchased by the GPIF, so the complexity of the process adds commission costs.