Some of the country’s pension funds are benefiting from years of diversification efforts, although the pandemic’s fallout has made investment execution harder.
The incoming president of the world’s largest pension fund will need to oversee a freer hand in foreign asset allocation and appoint a new CIO, with Hiromichi Mizuno leaving.
Pension funds may be reluctant to look further to equities, following the major market drops of March. But for genuinely long-term investors, stocks and alternative assets still offer appeal.
The demand for commercial real estate remains high in the region, CBRE's survey shows, but patience will be needed as the coronavirus disrupts deal execution.
The hedge fund industry has been relatively slow to embrace environmental, social and governance (ESG). But this looks likely to change as asset owners increasingly demand it.
Korean securities companies will continue to supply domestic asset owners with new overseas alternative investments, but they are taking increasingly higher risks in the process.