According to Reuters, South Korea’s National Pension Service (NPS) is set to allocate 65 per cent of its assets to riskier investments under newly announced long-term guidelines, aiming to bolster returns and ensure sustained viability.
The Ministry of Health and Welfare (MOHW) affirmed that the fund intends to swiftly engage in diverse alternative assets to optimize returns, Reuters reported.
Previously, the NPS held 46.7 per cent of its assets in equities and 16 per cent in alternative investments, with the remaining portion in safer categories.
The revised strategy involves augmenting exposure to both international and unconventional assets in pursuit of increased returns.
With total assets amounting to 1,069.7 trillion won ($777.68 billion) as of February’s end, this strategic investment shift reflects a proactive stance towards fortifying the long-term stability of South Korea’s public pension system.
