JPC Online 3rd Held Report
Partners Group Japan
What is a new image of pension investment that incorporates private assets that predicts structural changes in the after-corona market and economy?
With the market recovery more than expected, the pension fund seems to have survived the corona shock. In Japan, there is concern that the corona epidemic will be delayed due to a mutant epidemic, but it is expected that the outbreak will soon be resolved due to the progress of measures such as the start of vaccine administration worldwide.
However, the widening disparity before the corona shock and the US-China hegemony struggle involving Japan, the United States and Europe have continued, and the division of the world is about to deepen. Structural changes in the economy are accelerating, and pension funds may need to review their asset management policies.
With this awareness of issues, with the support of Partners Group Japan Co., Ltd., Marketmakers set the theme of "How should pension asset management in the after-corona era be dealt with" on April 21, 2021 (Wednesday). Hold a conference.
The Partners Group also proposed to eliminate the disadvantages of private assets, such as the unique economy-linked system (grabbing high prices), congestion, low liquidity, and high compensation. Please use it as a reference for building a future image of pension asset management.
Even before the spread of the new coronavirus in 2020, the world has undergone changes against the backdrop of technological developments, evolution of consumer habits, and the development of laws and regulations. In familiar areas, the promotion of digitalization has accelerated the development of data communications such as 5G and lines. A shift from a society that emphasizes mass production and mass consumption to a consumption behavior that emphasizes ESG. And there are cases of remarkable catch-up due to technological innovation in countries such as China and India.
The world of alternative investment has also undergone major changes from the 1980s to 2020. Many investment management companies have emerged in the last 20 years, and the amount of investment by investors in private assets has grown to about 10 times the scale. On the other hand, in the stock market, the number of listed companies has decreased, especially in the United States, and investors have seen a shift from stock investment to private investment. Private investment is becoming more and more non-negligible, but there are certain hurdles to investment due to some issues. How should Japanese investors deal with private investment in the future?
1 Number of listed corporations in the United States, Europe and Asia on Worldbank.org. 2 Based on the definition in Preqin. Includes natural resource funds. Growth rate from December 2000 to June 2019.
Source: Bloomberg, Thomson Reuters (Cambridge Associates)
講演者：宮崎 薫 / 後藤 茉美
ディストリビューション営業部長 / クライアント・リレーションシップ・プロフェッショナル
At this conference, we will focus on four major issues that will stop private investment. After that, we introduced some of the solutions that Partners Group can offer.
Source: Partners Group
Partners Group has proposed to introduce a "relative value approach" to address the tendency of funds to make cyclical investments (the total investment tends to increase as the valuation level rises). There is. It is an approach that flexibly adjusts the investment pace according to the relative attractiveness of investment. Next, regarding the fact that investment progress is difficult to progress, investment efficiency is improved by setting the amount of investment execution each year in advance. By minimizing the "search period" when there is no investment progress, it will lead to an improvement in the returns enjoyed by investors. Regarding the dual structure of remuneration faced in fund of funds investment, it is possible to suppress the decrease in returns due to management fees by incorporating secondary investment and buyout investment. The final liquidity point can be resolved by selling in the secondary market or combining products.
Partners Group is a company specializing in private investment, investing in four major assets: private equity, private debt, real estate and infrastructure. In addition, there are fund of funds (primary), secondary, and direct investment (not only joint investment but also buyout investment) investment strategies in each asset class. As a result, investors are free to combine Partners Group investment strategies in the context of their portfolio.
For example, investors who want to build a portfolio that is diversified across all assets can incorporate all the investment strategies offered by Partners Group. Investors who want to pursue higher returns while maintaining portfolio diversification can also combine private equity strategies. The combination is free.
In the next 20 years, private investment will play an increasingly important role as technology innovations and market maturity. Partners Group wants to solve the challenges of private investment with a unique approach and make it easier for investors to tackle. Partners Group has comprehensive coverage of the private market and can provide tailor-made solutions to meet the needs of investors.
Partners Group Japan Co., Ltd.
Institutional Investor Director Shuji Mikami
Email address: shuji.mikami [at] partnersgroup.com
Phone number: 03-5219-3704