By Park Hyong-ki
Korea Investment Corp. (KIC) and its local asset management partners will invest more in advanced alternative markets abroad, KIC CEO Choi Hee-nam said Friday.
"We will expand our reach with local partners abroad by investing in alternative assets, private equity funds and hedge funds," he told a press conference in Seoul. Choi has been the KIC chief executive for a year
"This year, we forecast developed markets to be more stable even though their growth projections have been lowered."
This is part of KIC's efforts to boost its alternative investment portfolio in areas such as infrastructure and real estate.
It aims to make this 20 percent of its total investment in the long run, Choi said.
KIC's investment in alternative assets now accounts for 16 percent, while that in stocks and bonds makes up more than 70 percent, as of the end of 2018.
It only invests in overseas advanced markets such as the United States and Europe.
KIC's assets under management stood at $138.3 billion in February.
The Ministry of Economy and Finance and the Bank of Korea have entrusted KIC to manage some of their dollar-denominated reserves worth $102.6 billion.
KIC obtained a 5.16 percent return on its investments from January to February, after losing 3.66 percent in 2018.
Choi said KIC will not pursue acquisitions like other global wealth funds.
"Our basic goal is increasing returns from investing the country's dollar reserves in overseas markets over the long term," Choi said.
"We are not there to acquire large shares in assets like the National Pension Service or other global wealth funds."
When it invests, the KIC usually acquires less than a 1 percent stake in assets for more than seven years.
However, the KIC said it will adopt a stewardship code to exercise its right with or through its partners to achieve reasonable gains.
It will also draw up a long-term roadmap to invest in assets and companies that have a sound governance structure, promote the environment and are socially responsible.
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| KIC CEO Choi Hee-nam speaks at a press conference in Seoul, Friday. / Courtesy of KIC |
"We will expand our reach with local partners abroad by investing in alternative assets, private equity funds and hedge funds," he told a press conference in Seoul. Choi has been the KIC chief executive for a year
"This year, we forecast developed markets to be more stable even though their growth projections have been lowered."
This is part of KIC's efforts to boost its alternative investment portfolio in areas such as infrastructure and real estate.
It aims to make this 20 percent of its total investment in the long run, Choi said.
KIC's investment in alternative assets now accounts for 16 percent, while that in stocks and bonds makes up more than 70 percent, as of the end of 2018.
It only invests in overseas advanced markets such as the United States and Europe.
KIC's assets under management stood at $138.3 billion in February.
The Ministry of Economy and Finance and the Bank of Korea have entrusted KIC to manage some of their dollar-denominated reserves worth $102.6 billion.
KIC obtained a 5.16 percent return on its investments from January to February, after losing 3.66 percent in 2018.
Choi said KIC will not pursue acquisitions like other global wealth funds.
"Our basic goal is increasing returns from investing the country's dollar reserves in overseas markets over the long term," Choi said.
"We are not there to acquire large shares in assets like the National Pension Service or other global wealth funds."
When it invests, the KIC usually acquires less than a 1 percent stake in assets for more than seven years.
However, the KIC said it will adopt a stewardship code to exercise its right with or through its partners to achieve reasonable gains.
It will also draw up a long-term roadmap to invest in assets and companies that have a sound governance structure, promote the environment and are socially responsible.
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