Japan government pension fund hires Wellington Management for foreign stock portfolio

Tue Dec 24, 2013 12:34am EST

TOKYO, Dec 24 (Reuters) - Japan's Government Pension
Investment Fund, the world's largest pension fund, on Tuesday
said Boston-based Wellington Management Company is the ninth
manager of its $161 billion foreign stock portfolio.
    In September, the fund appointed eight managers for the
foreign equity portion of its entire $1.2 trillion portfolio. It
is targeting higher returns as payouts are increasing because of
a rapidly ageing population. 
    Wellington manages some $774 billion worth of assets.
    The MSCI Kokusai index will be the benchmark for the foreign
stock portfolio.
    The pension fund occasionally replaces managers after
reviewing performance and investment strategies.
    It is currently in the final stage of choosing new managers
for its domestic stock portfolio, which it expects to announce
by March-end. 
    The fund allocates investments based on a model portfolio of
60 percent domestic bonds, 11 percent foreign bonds, and 12
percent each in domestic and foreign stocks.
    As of September-end, it had 56.28 percent in yen bonds and
9.82 percent in foreign bonds, plus 15.80 percent in domestic
stocks and 13.09 percent in foreign stocks. It has invested the
remaining 5 percent in short-term assets.