GPIF, APG Launch Infrastructure Joint Investment Partnership

The Government Pension and Investment Fund of Japan and APG Asset Management, on behalf of Dutch pension fund ABP, have announced a joint investment program to make investments in developed markets infrastructure.

APG Asset Management will invest in the partnership on behalf of Dutch pension fund ABP, which is the majority stakeholder in APG. APG is a subsidiary of ABP and invests on behalf of a number of Dutch pension funds. APG managed 569 billion Euros ($617.58 billion) in assets as of December 2023.

GPIF, the largest pension fund in the world manages $1.5 trillion in assets in its portfolio, which is roughly 50% equities and 50% bonds. Approximately 1.53% of the fund’s assets are set aside for other alternative investments, including private equity and infrastructure.

In March, GPIF sent out requests for information on alternative investments, signaling that the fund had interest in expanding its investments outside of bonds and stocks. The fund requested information on infrastructure, cryptocurrency, timber and other alternative investments.

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“GPIF has been increasing its exposure to alternative investments (infrastructure, private equity, and real estate) in expectation of greater portfolio diversification, seeking to improve investment efficiency and further ensure the stability of pension finance,” said Masataka Miyazono, president of GPIF, in a press release announcing the partnership.

“We have recently launched a joint investment program with APG in the infrastructure sector. We are pleased to embark on a long-term partnership initiated between APG and GPIF, as representatives of public pension fund investors from respective countries,” Miyazono continued.

According to APG, in a separate press release, part of the focus of the investment partnership will be on sustainable energy, fiber networks, and transport. APG has a history of making infrastructure investment that supports the energy transition, and currently manages 24 billion euros in infrastructure investments globally, which have returned an annualized 10.2% over the past five years.

“We are delighted to partner with GPIF, as our shared commitment to long-term private investments makes this collaboration a natural fit. We believe that joining forces will help to address the growing need for coordinated actions from like-minded, long-term investors to deliver long-term value to our beneficiaries and the broader society. We look forward to collaborating with GPIF to achieve our shared goals,” said Ronald Wuijster, CEO of APG Asset Management in the release.

Previous APG infrastructure investments include a 33% stake in 26 solar facilities across the U.S. acquired from insurer Global Atlantic Financial Group in November 2023, and a 49% stake in solar energy and storage company Gemini.