Perspectives on South Korean Overseas Investments
National Pension Service (NPS) Asset Allocation
NPS Profile - World's 3rd Largest Pension Fund
NPS has total investable assets of $615bn, which has been unprecedented
growth since the establishment in 1988.
NPS Global Alternative Exposure
58.1tn
Asset Value
of the Global Alternatives
• Total
♦ Real Estate
•
Annualized investment return has been 5.7% since inception.
•
Due to the size of the fund, they place great importance on diversifying the
portfolio geographically. NPS has been continuously expanding the pursuit of
stable generation of income over the long run, with global alternatives
expected to be 15% of the portfolio by 2024.
40% of the portfolio is outsourced to other Korean and international
managers with longstanding relationships.
Investment Allocation of NPS
USD billions
700.0
600.0
500.0
400.0
300.0
200.0
100.0
0.0
2014
■Stock
2015
■Bond
2016
Infra
2017
2018
2019
2020
Real Estate
PE Hedge Fund
☑
DARC
MATTER
Source: NPS Annual Report
8.1%
Weight
24.5
in the Total Fund
32.3
58.1
52.2
44.6
41.7
21.1
23.5
19.1
18.3
40,5%
15.5
12.2
In-house Management Portion
of the Global Alternatives
2014
2015
2016
2017
2018
2019 Q3
Geographical Breakdown
Fund
Туре
69.1%
Geography
Project
30.9%
Asia
14.2%
Europe
North America
18,2%
33.2%
South America
0.3%
Global
33.6%
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