SOUTH KOREA - The National Pension Service of South Korea (NPS) has chosen BNY Mellon Asset Servicing and State Street Corporation to provide global custody, securities lending and other services as it builds up its skills.
Commenting on the development, Tim Keaney, co-head of BNY Mellon Asset Servicing, noted the enormous growth potential in pension schemes in Korea and their need to expand investments to global markets aggressively as Korean investors, from institutional to retail investors have become more sophisticated.
Moonsoo Kim, a spokesman for the NPS said it was focused on increasing its overseas investments.
Established in 1988, the NPS is currently the largest Asian public pension fund outside Japan and has KRW207trn (US$224bn) in assets under management, as of June 2007.
It will expand its investments in bonds and overseas stocks up to 20% of its total assets by 2012.
In a separate development, the organisation recently said it would entrust the World Bank with about $1bn for investment in offshore bonds over the next two years, according to reports.
It has also signed strategic partnerships with Credit Suisse and Morgan Stanley in a bid to diversify its assets internationally and to help it build in-house fund management teams for certain assets classes through special training programs.
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