Korea's NPS appoints new CIO
The National Pension Service of Korea (NPS) has named Myun-Wook Kang, formerly CEO of Meritz Asset Management, as its new chief investment officer.
In addition to Meritz, Kang has worked for Schroder Investment Management, Shinhan BNP Baribas and ABN AMRO, the Ministry of Health & Welfare said in a statement. His appointment follows that of Hyung-Pyo Moon, previously minister of health and welfare, as chairman of NPS.
Several candidates were considered for the CIO post. According to local media, the four-person shortlist also included former CIOs of Korea Investment Corporation, the Government Employees Pension Service, and the Korea Foundation of Community Credit Cooperatives.
The chairman and CIO positions opened up last November after the incumbents stepped down due to tensions over strategy. CIO Wan-Sun Hong's two-year term was not renewed, while Chairman Kwang Choi resigned in response to conflicts with the Ministry of Health & Welfare. These conflicts concerned whether or not to renew Hong's term.
NPS was set up in 1988 and the National Pension Fund Management Center was launched in 1999 with a view to professionalizing investment management. At the time NPS had KRW500 billion ($432 million) in assets and was three years away from starting its domestic alternative investment program. The fund first went into offshore alternatives in 2005.
As of August 2015, NPS had KRW495 trillion in assets, of which KRW50.2 trillion, or 10.1%, was in alternatives. The domestic alternatives portfolio was worth KRW21.7 trillion by the end of the second quarter of this year, including KRW6 trillion in real estate. Of the KRW26.5 trillion overseas alternatives portfolio, KRW12.5 trillion was in real estate.
The fund exceeded KRW500 trillion in 2015 and is expected to reach KRW847 trillion in 2020 and KRW2,561 trillion in 2043. Assuming no change in the percentage allocation, the KRW46.7 trillion committed to alternatives at the end of 2014 would be more than KRW253 trillion by 2043.
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