SEOUL, April 8 (Korea Bizwire) – South Korea’s state pension fund will invest around 1 trillion won (US$866.7 million) in overseas hedge funds for the first time this year as part of its efforts to diversify its investment portfolios, the health ministry said Friday.
The plan was submitted to a public pension fund operation committee, which reviewed the proposed revision to management guidelines for the National Pension Service (NPS), one of the country’s largest institutional investors.
During the meeting, operation targets for hedge fund investment and a benchmark to be used to assess its performance were also determined, according to the ministry.
The new investments will be made indirectly by those entrusted by the pension fund operator. The scale of the investment will be adjusted depending on market conditions, it added.
NPS investment reached 511 trillion won at the end of last year. The figure includes 94.9 trillion won worth of local stocks, 69.9 trillion won for overseas stocks and 268.6 trillion won in domestic bonds.’