The asset owners will likely co-invest with more asset owners outside Korea as they are not able to conduct due diligence amid the lockdown while looking for higher returns.
Sustainable investments have outperformed traditional ones in Asia by 3%-4% during the Covid-19 pandemic and private credit investors are targeting them in their strategies.
Pension funds are joining a growing number of asset owners globally to find investment opportunities in real assets amid the Covid-19 fallout.
The pandemic has sharpened investors’ focus on ESG adoption, but for Khazanah and other asset owners in Asia, scaling up sustainability-themed investments has its challenges.
Some asset owners in the region are reducing riskier assets, while more investors around the world are planning to increase their allocations to government bonds.
Asset owners and managers alike have flocked to the distressed debt universe, but the CIO of Korea’s Public Officials Benefit Association has so far not invested into such assets.