NPS sees alternative divisions regrouped by asset class, creating deputy CIO roles
Nov 15, 2016 (Gmt+09:00)
The National Pension Service (NPS) is seeking to reclassify its alternative investment divisions, currently divided into domestic and global assets, into three asset classes – private equity, real estate and infrastructure – in a move which domestic fund houses fear may undercut their competitiveness over foreign rivals.
In the first reorganization of the NPS’ fund management department in 10 years, the pension scheme plans to create two deputy chief investment officer roles. Deputy CIOs will oversee individual investment divisions as heads of newly-created public and private sectors, respectively and serve as a bridge between CIO Myoun-Wook Kang and the heads of those investment divisions. (for details, see the table below)
The recent example was about the $900 million aircraft fund. The NPS’ domestic alternative investment division had reviewed a possible investment in the fund which would buy a 20 aircraft portfolio from GE Capital Aviation Service, because the fund was being prepared by a domestic securities firm. However, NPS backed out of the potential investment after a reshuffling of its senior managers in July, in which its domestic alternative division head moved to the global alternative team.
Former NPS chairman Kwang-woo Jun said that the planned reorganization would help improve stability and management capabilities at the pension fund, and present a vision for its future to in-house management staff who are nervous about the upcoming relocation of their office to Jeonju, a three-hour drive south of Seoul.