South Korea's National Pension Service on Wednesday raised its target allocations for global equities and alternatives by 5 percentage points each for the five-year period through the end of 2023.
A Seoul-based spokesman for the 625.9 trillion won ($580 billion) pension fund said NPS' fund management committee met Wednesday to complete the fund's annual, medium-term asset allocation exercise.
For the five years through Dec. 31, 2023, the committee left the fast-growing portfolio's overall allocation to equities unchanged at 45%, but shifted the balance heavily in favor of global equities.
The latest midterm targets call for a 30% weighting to global equities, double the 15% weighting for domestic equities.
For the five years through Dec. 31, 2022, the global-domestic equity split was 25% to 20%.
As of the March 31 close of the latest quarter, the fund's domestic equity weighting, at 20.9%, still exceeded the 17.4% exposure to global equities.
The updated midterm asset allocation plan likewise targets a 15% weighting in alternatives, up from the "over 10%" weighting outlined in the five-year plan through 2022.
The fund's alternatives allocation as of March 31 stood at 10.7% — with an overseas-domestic split of roughly 2-to-1.
NPS' target for domestic fixed income, meanwhile, fell to 35% from 40% in the prior year's midterm allocation plan. The fund's allocation to domestic bonds as of March 31 was 46.7%.
The target for global bonds stands at 5%, unchanged from the prior year's midterm allocation plan but up incrementally from its 3.8% allocation as of March 31.