The country's lifers are seeking high-quality overseas assets to strike a balance between risk and return. However, new capital rules from 2023 are making these choices harder.
With major fixed income exposure that it must retain until 2016, Korea’s largest life insurer is concerned about potential interest rate hikes, says the head of asset portfolio management.
They are doing so in response to Asia-Pacific institutions rising appetite for assets such as hedge funds, private equity and real estate.
Under the partnership with New York Life Investments, the Korean insurer is targeting domestic institutions with a new asset-allocation fund and mulling offshore business.
South KoreaÆs corporate pension market grew by 35.9% in December to $12.2 billion as big companies entered the new system.
The life insurer is drawing up a new strategic asset allocation and risk-management policy for investment exposures.