Korea Pension Fund Bets on Private Credit to Fight Global Swings
- Alternative investments are attractive as a hedge against risk
- Fund plans to cut domesitc equities exposure, raise foreign
This article is for subscribers only.
As stocks and bonds remain vulnerable to gyrations in global markets, one of South Korea’s major pension funds is betting big on alternative assets to boost returns.
Government Employees Pension Service, with about $6 billion in assets, plans to raise its investments in the category, that includes private credit and real estate loans, to 34% in the next four years from about 28% aimed for this year, Chief Investment Officer Baek Joohyun said in an interview.