Japan GPIF picks new managers for stocks, adopts new index

TOKYO, April 4 Fri Apr 4, 2014 3:01am EDT

TOKYO, April 4 (Reuters) - Japan's $1.26 trillion public pension fund said on Friday it has selected 14 active fund managers to supervise its domestic equities investment and added the JPX Nikkei 400 index, among others, as additional benchmarks to its investment strategy.

The Government Pension Investment Fund, known as GPIF and whose asset size exceeds the size of Mexico's economy, said it would start investing both in active and passive investments in J-REIT (Japan Real Estate Investment Trust).

The move is aimed at generating higher returns to cope with pension payouts for Japan's rapidly ageing population.

GPIF announced the new managers after issuing a tender a year ago as Prime Minister Shinzo Abe's government pressures the public fund to rely less on low-yielding Japanese government bonds as part of an overhaul of public funds. (Reporting by Chikafumi Hodo; Editing by Chang-Ran Kim)