GPIF Adds Wellington Management as Foreign Stocks Manager

Japan’s Government Pension Investment Fund, which oversees the world’s largest pool of retirement savings, added Wellington Management Co. to help with active management of foreign-equity investments.

GPIF hired Wellington International Management Co., a unit of the Boston-based company, to assist in managing such investments, according to a statement on its website today. The firm will use the MSCI Kokusai Index as its benchmark, the GPIF statement said. Wellington Management, the parent company, had about $774 billion in client assets under management as of June 30, according to its website.

GPIF held 13 percent of its 124 trillion yen ($1.19 trillion) in assets, or 16.7 trillion yen, in international stocks as of Sept. 30, according to its quarterly report. Wellington International joins eight other active foreign-equity managers including Amundi Japan Ltd. and BNY Mellon Asset Management Japan Ltd., whose selection GPIF announced in a statement on its website on Sept. 2.

GPIF, with a target allocation to Japanese bonds of 60 percent of holdings, should look at investing more in overseas assets, an expert panel told the government in a report Nov. 20.

“By buying foreign assets, it will support a weakening yen,” Takatoshi Ito, chairman of the advisory group, said in an interview on Dec. 6 “This isn’t a bad thing for the current state of Japan’s economy. It’s not going to create a bubble” he said, adding that the panel’s main objective is to boost returns for the Japanese populace.

To contact the reporters on this story: Anna Kitanaka in Tokyo at akitanaka@bloomberg.net; Shigeki Nozawa in Tokyo at snozawa1@bloomberg.net

To contact the editor responsible for this story: Sarah McDonald at smcdonald23@bloomberg.net

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