Japan’s ¥225trn (€1.37trn) Government Pension Investment Fund (GPIF) and Dutch pensions asset manager APG have teamed up to invest in infrastructure.
The pension fund investors said they have launched the joint investment programme to “gain access to attractive investment opportunities, with a focus on infrastructure in developed markets worldwide”, without disclosing any financial information.
The partnership is expected to focus on sectors such as sustainable energy, fibre networks, transport and other infrastructure projects.
“The partnership will focus on investment opportunities that align with the long-term strategies of both pension funds to drive long-term value for their respective beneficiaries,” the firms said.
APG, a €569bn asset manager, has Dutch public pension fund ABP as its majority shareholder. It is the eighth largest infrastructure investor, according to the IPE Real Assets Top 100 infrastructure investors 2023 ranking, with $26bn in assets.
GPIF, the world’s largest pension fund, ranked 24th, with $11bn in assets.
In August last year, GPIF issued a request for information on infrastructure investment opportunities in its home market. At the time, GPIF said: “The scope of the RFI is for domestic infrastructure investment opportunities. However, we also accept investment opportunities that include projects and assets outside Japan as a part of the portfolio.”
The GPIF and APG alliance is the first time the two firms have teamed up.
Masataka Miyazono, president of GPIF, said the pension fund has been increasing exposure to the alternative investment sectors in “expectation of greater portfolio diversification, seeking to improve investment efficiency and further ensure the stability of pension finance”.
He said: “As part of our recent partnership with APG, we launched a joint investment programme in the infrastructure sector. As the leading public pension fund in each country, we are pleased to be at the start of a long-term partnership with APG. GPIF will continue to work to secure long-term investment returns for the benefit of the pension beneficiaries.”
Ronald Wuijster, CEO of APG Asset Management, said: “We are delighted to partner with GPIF, as our shared commitment to long-term private investments makes this collaboration a natural fit.
“We believe that joining forces will help to address the growing need for coordinated actions from like-minded, long-term investors to deliver long-term value to our beneficiaries and the broader society. We look forward to collaborating with GPIF to achieve our shared goals.”
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