Amidst the current trend of consolidation among major asset owners and investment managers, Japan’s Government Pension Investment Fund (GPIF) has chosen to take a different path. In contrast to Larry Fink’s observation of a “long-term shift in client consolidation,” GPIF is expanding its active foreign equity manager lineup. Over the past year, the ¥219.2 trillion ($1.51 trillion) pension fund has significantly increased its active foreign equity managers to around 30, up from seven.
Quantitative screens have been used to assess manager skill, with a notable addition of 16 U.S.-focused managers last October and a further 13 for developed market stocks. This strategy involves both established players like BlackRock and J.P. Morgan Asset Management and smaller ones like Osmosis Investment Management and Montrusco Bolton Investments Inc. This approach signifies GPIF’s strategic departure from prevailing industry trends.