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NPS seeks more risk with asset allocation shake-up

The Korean national pension fund is embracing a new investment approach, allocating capital across asset classes to boost returns. The fund is prioritising riskier assets, such as equities and alternatives, as evidenced by a recent $1.1 billion external mandate that exemplifies this strategic shift.
NPS seeks more risk with asset allocation shake-up

Higher allocation to equity markets is expected as Korea’s National Pension Service (NPS) is changing its core asset allocation method for the first time in 18 years, including a strategy to increase the allocation of investments in risky assets to as much as 65% with a new reference portfolio, according to a May 2 announcement.

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