The investment pool for private pension funds will choose a new lead manager for the first time in five years since its establishment in 2015, the Yonhap Infomax reported.
Strong candidates for the new lead manager will be announced on July 22. The new lead external manager will start its four-year work from September 1. The company will manage asset flow and liquidity of the investment pool, commit funds to sub-managers and provide education and advisory services.
Korea Investment Management is the current lead manager of the investment pool for private pension funds.
The investment pool for private pension funds grew from 600 billion won ($498.7 million) at the time of its launch to 1.993 trillion won as of the end of March. However, the size of the pool is far below expectations considering that the target was 9 trillion won. Alternative investment assets account for more than half of the portfolio at 1.58 trillion won. Equities, bonds, and money market funds are worth 134.2 billion won, 140.6 billion won, and 436.9 billion won respectively.
“Competition is intensifying as the return of the investment pool for private pension funds is low and other external management products like outsourced chief investment officer (OCIO) are increasing,” an industry source said. “It will be difficult for the investment pool to rapidly increase its size to 9 trillion won.” (Reporting by Hyewon Chang)