South Korea SWF Eyes Doubling Alts.

Apr 25 2014 | 9:50am ET

South Korea’s sovereign wealth fund plans to double its alternative investments over the next decade, a move that could put up to one-fifth of its money into such funds.

Alternatives currently make up about 10% of the Korea Investment Corp.’s US$72 billion portfolio. But the SWF feels the need to increase it as returns from its other investments slow.

“We’ll have to embrace the lower return expectation from traditional assets and that will continue for a considerable period,” KIC chief investment officer Choo Heung Sik told Bloomberg News. “Considering such an environment, expanding into alternatives is one of the most efficient way to protect yield in the mid-to-longer term.”

Choo’s announcement echoes that of his predecessor, Lee Dong Ik, who stepped down last month, but not before pledging last year to triple the KIC’s alternatives allocation.

I want to help KIC explore some gray areas between the traditional and alternative assets,” Choo told Bloomberg. “As the size of our total assets grow, the pace of growth in alternative assets will be much faster than before.”


In Depth

Hedge Fund Veteran Peter Borish Talks Trading

Dec 17 2014 | 9:32am ET

Peter Borish says 2014 was “tricky” from a trading perspective. “The best...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.