South Korea's National Pension Service will make its first allocations to hedge funds starting at the end of this year, said a spokeswoman for the 469 trillion won ($426 billion) Seoul-based pension fund.
NPS' investment committee has set an initial target allocation of 0.5%, or roughly $2.1 billion, for allocations to hedge fund-of-funds strategies, the spokeswoman said. Customized investments to specific hedge funds might follow in the future, she added.
The fast-growing pension fund's website showed an allocation of 9.7% to alternatives strategies as of Nov. 30, with a target to raise that weighting to 11.5% of the portfolio by the end of 2015.
