NPS to bump up alternatives proportion to 15% by end-2023
Jun 01, 2018 (Gmt+09:00)
The National Pension Service (NPS) will raise the proportion of alternative investments from last year’s 10.8% to around 15% by end-2023 when its assets under management are expected to exceed 1,000 trillion won ($931 billion), according to the Ministry of Health and Welfare.
Under the mid-term asset allocation plan for the 2019-2023 period, alternatives will represent 12.7% of the NPS’ projected AUM of 729.5 trillion won by the end of next year, or 92.6 trillion won in value, the ministry said in a statement on May 30. It was released just after the ministry presided over a regular committee meeting to discuss the pension fund’s asset management plans.
The average target return for the 2019-2023 period was set at 5.3%, slightly higher than the 5.1% target for the 2018-2022 period.
NPS aims to trim the ratio of domestic equities from this year amid caution about its growing clout in local stock markets and in an effort to diversify portfolios for better returns.
By Chang Jae Yoo
yoocool@hankyung.com
Edited by Yeonhee Kim
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