Korea construction workers’ fund to pick two debt fund managers for $70 mn
Apr 13, 2017 (Gmt+09:00)
Hankook Tire buys $1 bn Hanon Systems stake from Hahn & Co.
NPS to hike risky asset purchases under simplified allocation system
Osstem to buy Brazil’s No. 3 dental implant maker Implacil
S.Korea's LS Materials set to boost earnings ahead of IPO process
UAE to invest up to $1 bn in S.Korean ventures
The Construction Workers Mutual Aid Association (CWMA) in South Korea is planning to allocate 40 billion won ($35 million) each to a European private debt fund (PDF) and an overseas real estate debt fund soon, said a source of the association on April 13.
The CWMA source told the Korean Investors that it is in the process of screening management firms, without elaborating further.
It recently selected five domestic asset managers to entrust a combined 75 billion won for investing in private equity and venture capital funds. It is the first time for the $2.8 billion savings fund to commit capital to blind-pool funds.
Since the former domestic equity head of the National Pension Service (NPS) Jung-su Han took office as CIO last July, the fund under the Ministry of Employment and Labor has been diversifying into overseas and alternative investments beyond fixed-income assets which make up 77% of its total assets.
It is reportedly aiming to increase the proportion of alternative investments to 15% by end-2017 from the current 10%, in an effort to meet its targeted return of 2.42% this year.
In 2016, CWMA returned mere 1.95%, hit hard by a jump in bond yields following the election of Donald Trump. It is below the returns of 4 to 5% of other major South Korean pension and retirement funds.
South Korean institutional investors are piling into overseas private debt and real estate debt funds in search of stable returns with low risks.
By Daehun Kim
daepun@hankyung.com
Yeonhee Kim edited this article
-
Pension fundsNPS to hike risky asset purchases under simplified allocation system
May 02, 2024 (Gmt+09:00)
-
Real estateUS multifamily market challenges create investment opportunities
Apr 30, 2024 (Gmt+09:00)
-
Mergers & AcquisitionsSTIC Investments to sell Korea’s top mobile coupon platform
Apr 30, 2024 (Gmt+09:00)