May 25, 2017 / 3:37 AM / in 5 months

S.Korea's pension fund says to raise overseas investment to 40 pct by 2022

SEOUL, May 25 (Reuters) - South Korea’s National Pension Service (NPS), the world’s third-largest pension fund, said on Thursday it will raise overseas investment to about 40 percent of assets by 2022, as it continues to diversify investment to minimise risk.

The NPS, which had 564 trillion won ($504.34 billion) under management as of February, had 27 percent of assets invested overseas as at the end of 2016.

The fund, which estimates assets of $2.2 trillion by 2043, said in a statement it aims to have about 45 percent of assets invested in stocks, 45 percent in bonds, and at least 10 percent in alternative investments, such as real estate, by 2022.

It also forecast assets to reach 655.7 trillion won by 2018, with local stocks, local bonds, foreign stocks, foreign bonds and alternative investments making up 18.7 percent, 47.1 percent, 17.7 percent, 4 percent and 12.5 percent respectively.

NPS’ Investment Management organisation, which has seen a wave of resignations by fund managers as its headquarters moved to a city 200 km (125 miles) from the capital Seoul in February, said on Wednesday it named new managers in overseas alternative investment and stocks.

$1 = 1,118.3000 won Reporting by Yuna Park; Editing by Christopher Cushing

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