Korea Investment Corp., Seoul, licensed three non-market-cap-weighted indexes from the FTSE Group and will manage internally a portion of its public markets investment program in those strategies by the end of 2011, confirmed FTSE spokeswoman Jill Mathers.
Ms. Mathers declined to say which indexes KIC licensed, or how much of the $37 billion sovereign wealth fund’s assets would be allocated to those strategies.
A FTSE news release Tuesday quoted Scott Kalb, KIC’s chief investment officer, as saying: “We believe the FTSE index strategies that we have selected will help to further diversify and thereby improve our public markets investment program.”
In an e-mail, Mr. Kalb said, “we have about 2% (of the portfolio) in these strategies.” He declined to identify the specific strategies.
The FTSE news release noted that KIC is the first institutional investor in South Korea to use FTSE non-market-cap-weighted indexes.