South Korea's sovereign wealth fund has poured some US$3 billion into alternative investments this year.
The investments bring the Korea Investment Corp.'s alternatives holdings to roughly 10% of its $65 billion portfolio, chief investment officer Dong-Ik Lee told Pensions & Investments. KIC has set a 20% alternatives target, which Lee said it expected to reach over the next few years.
Hedge funds have won the biggest share of KIC's alternatives allocation, with 39%. Private equity accounts for 31% and real-estate for 26%. Lee said eventually the numbers would skew more towards p.e.