KIC aims to become world's 10th largest sovereign wealth fund Fund plans to diversify investment targets

Translated by Kim So-in 공개 2021-06-03 07:49:29

이 기사는 2021년 06월 03일 07:44 더벨 유료페이지에 표출된 기사입니다.

South Korea’s sovereign wealth fund Korea Investment Corporation (KIC) continues its flexible investment activities by discovering various investment targets and partners despite the rapidly changing financial environment.

KIC and the country’s pension scheme National Pension Service (NPS) plan to jointly invest $300 million each in a $2 billion infrastructure blind-pool fund created by US-based GLP Capital Partners, according to sources. Separately, the sovereign wealth fund is materializing its planned co-investment of 1 trillion won ($898 million) with Hyundai Heavy Industries Group.

Industry sources said KIC’s recent activities are aimed at boosting its assets under management (AUM) and diversifying its investments.

KIC is the world’s 14th largest sovereign wealth fund with $183.1 billion in AUM as of January. KIC needs to secure new institutions to entrust assets to the fund and maximize investment returns through active asset allocation to achieve its goal to become the world’s 10th largest sovereign wealth fund by AUM.

The fund is seeking to expand institutions that entrust their funds from the government, the Bank of Korea, and other pension funds to mutual aid associations and the national federations by revising Korea Investment Corporation Act.

“Many limited partners are paying attention as the revision of the Act could be a starting point for further changes,” said an industry source. “If the Act is revised, some funds that have entrusted their assets to pension fund investment pools without having a separate organization can entrust their assets to KIC.”

Jin Seung-ho, the new CEO of KIC, has pledged to push for flexible and innovative investment to tackle financial uncertainties in the wake of the Covid-19 pandemic during his appointment ceremony. Jin also expressed his commitment to responsible investments by establishing balanced investment portfolios.

KIC is expected to seek a wider range of investment opportunities through networks held by its investment partners. The fund is likely to continue to pursue its strategy to entrust its assets to general partners or make co-investments along with strategic investors.

The $2 billion infrastructure fund created by GLP Capital Partners will invest in companies related to logistics technology and assets with potential for scalability in the post-Covid 19 era.

KIC and Hyundai Heavy Industries Group signed a memorandum of understanding in March to co-invest 1 trillion won, which will be used to acquire or invest in companies with leading technologies in artificial intelligence, robots, digital healthcare, autonomous ship sailing and hydrogen fuel cells. (Reporting by Ar-rum Rho)
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