Korea's National Pension Service plans to issue a 400.0 billion-South-Korean-won mandate for a value-add strategy and a 200.0 billion-won mandate for a core logistic strategy, as part of its goal to increase exposure to alternative assets, IPE Real Assets reported, citing industry sources.
Joseph Lee, head of funding and finance at IGIS Asset Management, said the matter is at the proposal stage and asset managers are expected to "submit their plans by next month."
The publication said it is commonly known among Korean asset managers that the National Pension Service is looking to raise its allocation to alternative assets, including infrastructure and real estate, to 15.0% from roughly 10.8%.
According to the report, the National Pension Service had 622.0 trillion won under management at the end of December 2017.
As of March 21, US$1 was equivalent to 1,071.18 South Korean won.