Seowon National Pension Fund Management Chief Investment Officer (CIO) emphasized on the 11th, "I will accelerate the establishment of the standard portfolio system applied from this year for alternative investments."
The CIO said at a press conference held at the National Pension Service Northern Seoul Regional Headquarters on the same day, "This year, the National Pension Service plans to review overall improvements in the decision-making system, management organization, and investment infrastructure in line with the expansion of fund size."
The standard portfolio is a new asset allocation system introduced by the National Pension Service, which was confirmed for implementation this year by the Fund Management Committee last year. Instead of defining the product groups and target revenue, the essence is to adjust the proportion of investment assets according to market conditions.
For instance, the National Pension Service had previously set a proportion of 40% for private equity, 30% for real estate, and 30% for infrastructure in the field of alternative investments and invested according to the target revenue, but under the standard portfolio, it is no longer necessary to forcefully adhere to these ratios.
The CIO previously noted regarding the introduction of the standard portfolio, "To enhance revenue, I will flexibly improve the asset allocation system and promote investment diversification to manage the precious retirement funds of the public stably."
According to him, the standard portfolio system divides alternative investments into risky assets and safe assets, maintaining a certain ratio between the two asset types in the medium to long term. The proportion of risky assets is confirmed at 65%, and safe assets at 35%.
The CIO also said, "We achieved a high management revenue of 15% compared to major global pension funds last year," adding, "The continuously increased share of overseas and alternative investments positively contributed to this, marking the highest revenue since the fund's establishment in 1998."
He stated, "We will consistently maintain policies for domestic and overseas investment diversification and risk dispersion," and added, "We will also do our best to secure talented personnel through the reform of performance-based compensation systems and the establishment of next-generation overseas investment systems."