June 13, 2014 / 9:07 AM / in 4 years

South Korea pension fund to invest $37 bln in 2015

SEOUL, June 13 (Reuters) - South Korea’s National Pension Service (NPS), world’s fourth largest pension fund, will newly invest about 38 trillion won ($37.34 billion) in 2015, a government ministry said on Friday.

The Ministry of Health & Welfare said in a statement that NPS will invest 24 trillion won in local stocks and bonds, 10 trillion won in foreign stocks and bonds, and 4 trillion won in alternative investments in 2015.

The pension fund’s total investments in 2015 are expected to show a 5.6 percent increase from a planned 36 trillion won in investments this year.

The ministry added that in 2013, NPS’s foreign stock holdings yielded a return of 21.6 percent. In May, the government said NPS aims to boost stocks in its portfolio by some 5 percentage points by the end of 2019 while cutting holdings of bonds.

The pension fund’s assets under management were expected to swell to 532.8 trillion won by the end of 2015, the ministry said, up 9.9 percent from the projected asset pool of 484.9 trillion won by the end of this year. It had 436 trillion won in assets as of end-March.

NPS has also recently hired a U.S.-based advisor to invest $400 million in Asian real estate to increase its exposure to property in its home region.

$1 = 1017.7200 South Korean Won Reporting by Joyce Lee; Editing by Simon Cameron-Moore

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