Korea Investment Corp., the Seoul-based sovereign wealth fund, reported a 9.1% investment gain for 2021 on the back of strong equity market returns, ending the year with its portfolio valued at $205 billion.
A KIC news release Thursday credited "solid performance and continued asset entrustments by the government" for lifting the fund's portfolio above the $200 billion mark for the first time.
A KIC spokeswoman declined to provide details regarding government infusions to the fund over the past year. But the invesetment gain on the $183.1 billion in assets KIC reported as of Dec. 31, 2020, would have raised the portfolio's value to about $200 billion, suggesting a roughly $5 billion injection of new money by the government during the year.
For 2021, KIC reported $16.9 billion in investment gains, with an 18.61% return on the 40.6% of the fund's portfolio allocated to equities more than offsetting a 4.62% decline on its 34.9% allocation to bonds.
At the end of 2020, KIC had 42.7% of its portfolio invested in stocks and 35.2% in bonds.
KIC's allocations to alternatives, meanwhile, grew to 17.5% of the portfolio from 15.3% the year before. The fund doesn't provide calendar year return figures for its alternatives assets, noting only that they have delivered an annualized gain of 8.83% since inception.
By alternatives segment, KIC reported annualized returns since inception of 11.33% for private equity, 7.76% for real estate and infrastructure, and 5.64% for hedge funds.
KIC CEO Seoungho Jin said in the news release "KIC will continue to expand alternative assets to support sustainable long-term performance."