The National Pension Service (NPS) has formed a partnership with Dutch pension fund APG to actively secure investment opportunities in global blue-chip real assets, and they have already made joint investments in Europe and Australia.
South Korea’s state pension fund, which announced the partnership on Tuesday (October 20), said it had been seeking practical cooperation with APG for more than a year and shared the Dutch firm’s long-term operating philosophy. They recently secured a 50-50 joint investment in Australia’s university dormitory facilities and Portugal’s largest highway operator.
APG Asset Management is the largest pension provider in the Netherlands, with about 538 billion euros (698 trillion won) under its management at the end of 2019.
With global interest rates remaining ultra low, the NPS is trying to improve its framework for enlarging overseas investment through organizational changes, simplifying investment processes and expanding its global network. It signed a strategic partnership in June with Allianz Group, the world’s largest real estate investor, and will pursue more joint investment opportunities.
“The NPS is expected to share its experience in investing in real assets through partnerships with large global institutional investors with a common goal (like-mind), and to preempt investment opportunities in high-quality real assets by securing competitive advantages in terms of size and cost,” said Chief Investment Officer Ahn Hyo-joon. “We will ultimately step up efforts to enhance the fund’s long-term profits by strengthening cooperative exchanges with global leading institutions.”
APG CEO Ronald Wuijster said: “APG’s partnership with the NPS is expected to give us a more favorable approach to attractive investment opportunities that are difficult to realize alone, which will lead to positive investment results in the long term.” (Reporting by Kyoungho Lee)