Poba eyes niche assets as alternatives returns fade
Achieving a 5% return is impossible from investing in traditional assets alone, says the CIO of Korea’s Public Officials Benefit Association. But alternative risk premiums – and fees – have collapsed.
The steady fall in returns on alternative assets is forcing institutions into more niche investments, with one recent example being Korea’s Public Officials Benefits Association (Poba).
The $9 billion pension fund is exploring farmland, timberland, Asia-listed alternative funds and even more esoteric areas, such as royalty products. This comes after it made its first moves into insurance-linked securities and private debt at the end of last year.
Jang Dong-Hun, chief investment…
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