Published by Asia Asset Management – 22nd Sep 2017
Korea Investment Corp (KIC), South Korea’s sovereign wealth fund, has opened a branch office in Singapore, its first in Asia and the third globally, as part of its strategy to strengthen its presence in the region.
The other branches are in New York and London.
“KIC will manage assets locally through the Singapore office while focusing on deal-sourcing and building networks in Southeast Asia, India and Oceania,” it says in a statement on September 15.
“The new branch is expected to not only improve KIC’s overall returns through local asset management, but also facilitate co-investments with major institutional investors and global asset managers.”
The opening of the new branch is also part of KIC’s move to expand investments in alternative assets in the region; its Chief Investment Officer Kang Shin-woo was quoted as saying in a Korean news report.
“By opening our Singapore office, we aim to gain a competitive edge in alternative investment in Southeast Asia and Oceania,” Mr. Kang says in the Korea Times report.
“To that end, we plan to gradually increase our investment in alternative assets that enable higher long-term returns and lower risks through portfolio diversification.”
According to Mr. Kang, KIC aims to increase its alternative allocation to as much as 20% by 2020, from about 16% currently.
Alternative investments refer to assets other than conventional stocks and bonds, such as hedge funds, real estate, and derivatives contracts.
As at June 30, 2017, KIC had assets under management of over US$122 billion.
