South Korea’s $579 bln pension fund to boost overseas investment
South Korea’s National Pension Service (NPS) said on Wednesday it would significantly increase its asset allocation to overseas and alternative investments to diversify its holdings.
NPS, the world’s third-largest pension fund with around 68 percent of its $579 billion portfolio invested in South Korea, has been pressured to diversify beyond the limitations of South Korea’s economy.
The fund is seen as too big for South Korea’s relatively limited opportunities, and studies suggest the fund cannot earn the returns needed to sustain the fund for decades to come if it continues to concentrate on local assets.
Read More: Reuters
