Investing assets entrusted by the government, Bank of Korea and public funds in the global financial market
Based on principles of cautious and responsible investing, we minimize overall portfolio risk by diversifying investments across asset classes and regions, and increase returns in a sustainable manner.
KIC aims to generate consistent and stable investment returns within an appropriate level of risk to preserve and increase the value of sovereign wealth..
A benchmark is an independent index that can be used to evaluate investment performance, in terms of the effective allocation of strategic assets. It can be used
to determine whether the performance is a result of market trends or the individual manager’s expertise.
The benchmark reflects the investment market trends and returns of various assets. Simply identifying the components of a benchmark can be an effective way of understanding the fund manager’s strategic asset allocation, even without detailed investment guidelines.
If a stakeholder does not assess a fund manager according to relevant benchmarks, the fund manager may take on excessive risk to make up for losses that might result from unexpected market volatility. When a benchmark is applied, a standard is in place to monitor asset allocation and component items within specified
risk levels. With such means, risks can be more effectively monitored and controlled.
|Equity||Morgan Stanley Capital International All Country World Index ex Korea (unhedged)|
|Fixed income||Bloomberg Barclays Global Aggregate Index ex KRW ex Korea (unhedged)|
|Commodities||S&P GSCI Light Energy Total Return Commodity Index|
|Inflation-linked bonds||Bloomberg Barclays Global Inflation-linked Bond Index|
|Cash||ICE BofA Merrill Lynch 3-Month US Treasury Bill|
|Private equity||Morgan Stanley Capital International All Country World Index ex Korea (unhedged) + 2%, 3 months lagged|
|Real estate · infrastructure||G7 inflation rate + 4%, 3 months lagged|
|Hedge funds||BofA Merrill Lynch 3-Month U.S. Treasury Bill + 3.5%, 1 month lagged|