Giant Japanese investor seeks environmental social and governance managers for passive equities

Candidates must be signatories to the UN PRI

Japan’s ¥8.8trn (€87.4bn) National Federation of Mutual Aid Associations for Municipal Personnel has issued a tender for a passive domestic equity mandate incorporating environmental, social and governance (ESG) factors, according to reports.
A key feature is that candidate managers must be signatories to the United Nations Principles for Responsible Investment, believed to be the first such requirement by a Japanese public pension fund.

The federation wants potential asset management suppliers to have more than ¥50 in passive investment in domestic stocks, IP Asia reported.
The benchmark will be the MSCI Japan ESG Indexand the deadline for applications is February 13.

The appointment follows a revamp of the federation’s active domestic equity investment last year, the report added.

Intriguingly, the federation itself is not listed as one of Japan’s five asset owner signatories to the PRI.

They are: Fuji Pension Fund; Kikkoman Corporation Pension Scheme; Secom Pension Fund; SOMPO Japan

Insurance; and Taiyo Life Insurance Co.
In total there are 20 PRI signatories in Japan. Manager signatories include names such as Daiwa, Nikko, Nomura, Sumitomo Mitsui and Tokio Marine.

Link to Federation website (Japanese)