Global Money Management - Korean Corp. Starts Alts Investments

Korean Corp. Starts Alts Investments

The Korea Investment Corp., with assets totalling around USD22 billion, has started its external alternative investments by appointing Partners Group for a USD100 million private equity mandate. Dong-Ik Lee, head of KIC’s alternative investment team, said the mandate will invest in the secondary market, which is revealing “the best current investment opportunities.” With this mandate, KIC aims to profit from current dislocations in the secondary market, which offers high discounts to net asset value and attractive returns, he explained. KIC’s investments are currently concentrated in stocks and bonds. Bond portfolios, which account for USD12.6 billion, are invested in 21 currencies from 55 countries, with the Barclays Capital Global Aggregate Bond Index serving as the benchmark. Equity portfolios, which are worth USD5.2 billion, are invested in 26 currencies from 37 countries, with the benchmark being the Morgan Stanley Capital International (MSCI) World Index. Around 35% of its assets are managed in house, and the remaining 65% is handled by external fund managers. Future Plans KIC wants to expand into alternatives that have a low correlation with the traditional asset classes and hedge against inflation in order to preserve the long-term value ...

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Korean Corp. Starts Alts Investments

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