South Korea’s National Pension Service (NPS) will eliminate its separation between domestic and overseas alternative investment, Newsis reported on Wednesday.
The local news media said that the move was intended to replace its less profitable local alternative asset group with superior overseas alternative assets.
NPS should also increase the execution rate of alternative investments. The rate has fallen short of its goal due to market conditions.
According to the report, NPS’s alternative investment amounted to 87.5 trillion won ($71 billion) as of the end of February, accounting for 11.9 percent of its total portfolio. NPS should raise the portion to 13 percent by the end of this year.