Return to search

Japan’s Chikyoren appoints Daiwa as manager

The Japanese public pension plan continues its external manager selection with the appointment of Daiwa Fund Consulting as its third domestic real estate manager.

The Pension Fund Association for Local Government Officials, the Japanese public pension plan better known as Chikyoren, has appointed Daiwa Fund Consulting as a manager for its domestic real estate.

Chikyoren, which figures among the big four pensions in Japan, made the announcement on its website late last week.

Headquartered in Tokyo, Daiwa Fund Consulting provides advisory, portfolio management, and asset management services.

The latest manager selection follows three other external manager appointments for domestic and overseas real estate investments that have been made this year, as the pension fund prepares its foray into the asset class. In July, 2015 Chikyoren issued requests for proposals (RFPs) for external managers to provide it with investments opportunities in alternative assets.

Resona Bank was the first hire in March this year for domestic real estate investments. The Japanese bank was reportedly also appointed to manage the pension plan’s international bond portfolio last year. Then Nomura Asset Management was brought on board in June to also invest in domestic real estate on its behalf. A month later, UBS Asset Management was selected as the first manager of overseas real estate.

Chikyoren has not officially disclosed its target allocation to alternatives. As of the end of the third quarter of 2015, it had 10.18 trillion yen ($100 billion; €90 billion) in total investment assets. Domestic bonds remained the most allocated asset class, comprising 47.56 percent of the portfolio, followed by domestic equities at 22.93 percent.