Korea'smajor institutional investors got together to discuss their alternativeinvestment strategies for this year at the ASK 2017 Global PEF/Hedge FundSummit which was held on May 17. The participants shared the common difficultyof finding good venues to invest to effectively increase their assets.
Thisdilemma is also faced by the nation's major pension funds and insurancecompanies which plan to pour about 25 trillion won into the alternativeinvestment market this year.
Theyhave the same view that the alternative investment market lost shine after tenyears of enjoying popularity throughout the world which led to a surge in theprices of alternative investment instruments.
Tobreak through the situation, they are focusing on segmentation anddiversification of investment targets. In particular, they picked equity-linkedbonds and private debt funds as promising investment destinations.
TheNational Pension Service, whose assets under management are as high as 564trillion won as of the end of February this year, is investing directly in theoperators of private equity funds or purchasing non-financial assets such asreal estate properties and infrastructures.
The Public Officials Benefit Association (POBA) will select two global private credit managers to invest around $200 million in mezzanine debt via separately managed accounts (SMAs). POBA will allocate $100 million to each of two SMAs through two domestic investment&hellip
The Government Employees Pension Service (GEPS) will allocate $20 million to US dollar-denominated structured notes based on South Korean credit default swaps (CDS) and three-month US dollar LIBOR. It received proposals for the investment mandate by the afternoon of June 26.&hellip
Korea Investment Corporation (KIC) will open its third overseas office in Singapore as early as August in its push for alternative investments in Asia, according to a local newspaper report. The opening of a foreign office will come six years&hellip