JAPAN - Chuo Mitsui Asset Trust and Banking has emerged as the Government Pension Investment Fund's (GPIF) largest external manager over the past year, while AXA Rosenberg has disappeared from the list.
According to new analysis released by the Japan Pensions Industry Database (JPID) reviewing changes in the mandates of the JPY116trn ($1.4trn) pension fund, Chuo Mitsui managed JPY13.3trn in assets for the world's largest scheme as of 31 March. This is an increase of 14.4% from the previous year, and moved the firm up the ranks of external managers from third to first.
It displaced Sumitomo Trust & Banking, whose assets managed for the GPIF went down by 21.47% to JPY11.6trn over the year. It is now the third largest external manager. The second place spot is held by Mitsubishi UFJ whose assets increased by nearly 33% during the year to JPY11.7trn.
The only manager to apparently have been terminated is AXA Rosenberg, which last year managed JPY116bn, but manages no assets this year. No reason was given in JPID's analysis and the GPIF was not immediately available for comment.
AXA has suffered a string of outflows in the US and Europe because of a coding error in its investment process. In February, the firm settled charges related to the coding error with the Securities and Exchange Commission, but not before assets had shrunk to $31bn at year-end 2010 from $70bn a year earlier. (Global Pensions; 4 February 2011)
However, the JPID said the pension fund has been vocal about its wish to reduce the number of external managers on its roster. The GPIF currently manages JPY31trn in-house in two passive domestic bond mandates and short-term strategies.
Last week, the pension fund said assets had fallen 5.31% over the past year.
The GPIF invests 60% in domestic bonds, 14% in domestic stocks, 10% in international bonds, 13% in international stocks and 3% in short-term assets.
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