The government's plans to stimulate infrastructure could offer sustainable investment opportunities across many sub-sectors. That is drawing the eyes of Asian asset owners.
The two public pension funds are increasingly forming partnerships to grow their property and infrastructure exposure globally. What's the thinking behind this trend?
South Korea's Public Officials Benefit Association plans to gain exposure to US infrastructure assets through private equity funds and co-investments, says its chief investment officer.
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.