Sovereign wealth fund Korea Investment Corporation (KIC) believes the rate of return on its investments may hit 10% this year due to the global stock market rally resulting from ample liquidity, chief executive officer Choi Hee-nam said in an interview with The Korea Times.

“Our financial record for this year has yet to be audited, but the return rate has surpassed 9% so far,” Choi told the newspaper. “If the S&P 500 continues to rise, the return rate will be able to reach 10%.”

The fund will have recorded double-digit returns for two consecutive years if it does reach this target, the report added. It achieved a return of 15.39% last year, the second best performance since the global financial crisis, after a 16.42% return in 2017.

Choi also said the KIC was making investments while taking into account environmental, social and governance (ESG) criteria. “Our ESG fund’s return rate is higher than the rate of return on our investments following the MSCI All Country World Index,” the CEO said.

Having established its stewardship principles in 2018, KIC has been pursuing ESG integration and remains committed to boosting responsible investments and returns.

In November, the fund joined the One Planet Sovereign Wealth Funds, a platform that aims to accelerate efforts to integrate climate change-related financial risks and opportunities in long-term asset management.

Going forward, KIC plans to pursue investment strategies in line with South Korea’s Green New Deal, strengthening its analytical capabilities, building a portfolio of selected ESG companies and continuing to make strides in global ESG strategic fund management. (Reporting by Jinwon Lee)