NPS seeks more risk with asset allocation shake-up
The Korean national pension fund is embracing a new investment approach, allocating capital across asset classes to boost returns. The fund is prioritising riskier assets, such as equities and alternatives, as evidenced by a recent $1.1 billion external mandate that exemplifies this strategic shift.
Higher allocation to equity markets is expected as Korea’s National Pension Service (NPS) is changing its core asset allocation method for the first time in 18 years, including a strategy to increase the allocation of investments in risky assets to as much as 65% with a new reference portfolio, according to a May 2 announcement.
The increase in risky assets will also include alternative investment. Up until now, NPS has been somewhat limited for investing in private markets, inclu…
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