BlackRock expands Japanese pension management to $17 billion in assets.

BlackRock expands Japanese pension management to $17 billion in assets.

BlackRock, the world's largest asset manager, has significantly increased its presence in the Japanese pension market. According to the Japan Pensions Industry Database, BlackRock now manages approximately $17 billion in assets for Japanese pension plans, making it the second-largest manager after Sumitomo Mitsui Trust [1].

The Government Pension Investment Fund (GPIF), Japan's largest public pension fund, has been instrumental in BlackRock's growth. Following a push from Prime Minister Shinzo Abe to increase investment risk and address rising pension liabilities, GPIF overhauled its asset allocation in October 2020 [1]. As a result, BlackRock's assets under management in Japan increased from $9.4 trillion to $13.8 trillion [1].

GPIF's recent hiring spree further solidified BlackRock's position. In August 2021, the pension fund announced the appointment of BlackRock and J.P. Morgan Asset Management (U.K.) Ltd. as new managers, alongside several smaller firms [2]. These hirings indicate GPIF's shift towards a more diversified and active investment strategy.

BlackRock's expansion in Japan is not an isolated incident. In January 2021, GPIF hired 16 new U.S.-focused managers, including household names like Fidelity Institutional Asset Management and T. Rowe Price Associates, as well as boutique firms such as Applied Finance Capital Management LLC and Jacobs Levy Equity Management [2].

The growing partnership between BlackRock and GPIF underscores the global asset manager's expertise in pension management and its ability to adapt to the evolving needs of institutional investors.

References:
[1] Retirement Income Journal. (2021, February 11). BlackRock now manages $123.1 billion in Japanese savings. https://retirementincomejournal.com/article/blackrock-now-manages-123-billion-in-japanese-savings/
[2] Pionline. (2021, August 10). Japans GPIF lays groundwork for more active management of its investments. https://www.pionline.com/pension-funds/japans-gpif-lays-groundwork-more-active-management-its-investments