Institutional Investors

Korean fund mulls diversification

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The $320 billion South Korean National Pension Service – the world’s fourth-biggest pension fund – is understood to be considering branching into hedge fund investment as it looks for ways to diversify outside of its home market and raise its total alternatives exposure. Currently alternatives exposure stands at around 7.8% but the plan is for this to total over 10% by 2016; when assets are expected to be over $413 billion.

The alternatives portfolio is made up of infrastructure, real estate, corporate restructuring and private equity funds. As yet there is no HF exposure. However, the alternatives portfolio