South Korean institutions are increasingly investing overseas in a bid to resolve their asset-liability mismatches.
The Korean central bank has chosen a group of transition management providers as asset owners push for greater transparency on transition costs.
Jun Kwang-Woo, chairman and CEO of the $300 billion pension fund, is visiting Hong Kong and Singapore to build ties and assess sentiment and trends.
Korea’s $311 billion National Pension Service will expand its manager outsourcing programmes in other asset classes.
Institutional investors need to reorganise their investment processes around new ways to access managers, extend time-horizons and measure risk, says Stanford’s Ashby Monk.
Over the next five years, allocations to international and domestic equities are set to expand dramatically.
Backed by the National Pension Service, socially responsible investment products in Korea now boast more than $3 billion in assets, and inflows are expected to continue.
Like ships passing in the night, pension funds from both sides of the Pacific are looking to increase investments on the far shore.
For starters, the newly selected fund managers’ annual fees will be 9/100ths of a basis point.
Kim Ho-Shik, formerly president at Korea’s National Pension Service, will advise Pacific Star on Korean real estate.
The pension fund is looking to take advantage of declines in global asset prices as it gradually increases its risk profile.
A wave of resignations sweeping through Korea’s leading institutional investors means it’s nearly time to update the Rolodex.
It can now mandate directly BNY Mellon and State Street as global custodians.