World's Biggest Pension Fund Is Moving Into Junk and Emerging Bonds

Japan’s $1.2 trillion Government Pension Investment Fund, the world’s largest, unveiled sweeping changes to its foreign bond investments, hiring more than a dozen new asset managers and creating mandates for junk and emerging-market securities.

The fund picked managers for eight categories of active investments in overseas debt, it said Thursday. GPIF chose Nomura Asset Management Co. to oversee U.S high-yield bonds and UBS Global Asset Management (Japan) Ltd. for European speculative-grade debt. Janus Capital Management will handle part of the pension giant’s U.S. bond investments as a subcontractor for Diam Co., according to GPIF’s statement, which didn’t specify whether the money would go to Bill Gross’s fund. Ashmore Japan Co., a specialist in developing-country investment, won the only local-currency emerging-market contract.