Japan’s GPIF Partners with OMERS and DBJ on Infrastructure

infrastructureJapan’s Government Pension Investment Fund (GPIF) is moving forward with its infrastructure investment program by partnering with the Development Bank of Japan (DBJ) and the Ontario Municipal Employees’ Retirement System (OMERS). OMERS is a major public institutional investor involved in infrastructure investing globally.

Approaching US$ 1.3 trillion in assets, the world’s biggest pool of retirement assets is trimming Japanese government bonds (JGBs) and using that allocation for infrastructure. Norway’s Government Pension Fund Global made similar modifications in its asset allocation by chopping fixed income and using that portion for institutional real estate piece.

At a formal briefing today, as much as US$ 2.7 billion could be deployed into infrastructure by the GPIF in the next few years. Taking into consideration the massive size of the GPIF, that would be around 0.2% of current assets under management.

The GPIF has taken a cautious approach to investing and conducted a series of studies on alternative assets and infrastructure. The GPIF was attracted to the concept of capturing a liquidity premium and broader asset diversification.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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