Korea’s NPS sets aggressive new asset allocation

Korea’s National Pension Service (NPS) is moving to increase exposure to domestic and international equities and alternatives after conceding it maintained allocations to fixed income for too long. This raises potential outsourcing opportunities for local and global asset managers. The $360 billion fund, established in 1988 to pay pension benefits, plans to increase domestic equity exposure to 20% of assets by the end of 2014, from 18.7% as at the end of 2012. Over the same period…