KIC’s Public Equities Allocation Neared $80 Billion at the End of 2020 vs $15.7 Billion in 2010

Posted on 08/29/2021

The net asset value for the Korea Investment Corporation (KIC) reached US$ 183.1 billion at the end of December 31, 2020. KIC returned 13.71% for the December 31, 2020 calendar year. Returns on traditional assets, which include fixed income and equities, generated an annual return of 14.62%.

According to SWFI asset allocation data, at the end of 2020, KIC had $78,183,700,000 allocated to public stocks vs. $15,682,500,000 in at the end of 2010, showing the KIC flexing its muscles in public equity markets. KIC’s equity benchmark is the Morgan Stanley Capital International All Country World Index ex Korea (unhedged).

Based on the market value of traditional assets, KIC had 18.27% of its investments in Asia, 25.5% in Europe, and 53.87% in North America (mostly United States). At the end of 2020, KIC invests in 68 countries, 40 currencies, 3,235 equities, 7,725 fixed-income instruments and 369 funds, according to its annual report.

In 2021, KIC opened up an office in San Francisco to pursue more tech investments, both venture, private equity, and in public markets. The office shares an address with Asiana Airlines.

KIC went through some manager shuffles in 2020. According to the KIC annual report, “In 2020, the effectiveness of some strategies, including commodity trading adviser (CTA), declined due to increased market volatility resulting from the pandemic. The gap among hedge fund investment management companies broadened. In response to this polarization, KIC focused on building a foundation to generate stable, long-term returns by reducing the CTA strategy and selecting GPs with custom solution strategies.”

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