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Investment

Investing assets entrusted by the government, Bank of Korea and public funds in the global financial market

Portfolio Highlights

The Korea Investment Corporation was entrusted with USD 112.1 billion following its establishment in 2005, and has a net asset value of USD 183.1 billion as of the end of 2020.

  • Overview

    First entrusted with USD 1 billion in 2006, KIC has consistently expanded its operating scale through stable and capable management.


    Our assets under management at the end of 2020 totaled USD 183.1 billion on the back of excellent investment performance, marking a 16% increase from 2019.


    Following a principle of diversification, KIC manages a portfolio that is 84.7% traditional assets and 15.3% alternative assets, including private equity, real estate, infrastructure and hedge funds.


    Our alternative assets, which have a low correlation with traditional assets and tend to pursue relatively higher returns, grew to USD 27.9 billion in 2020, or 14% (USD 3.4 billion) year-on-year. The proportion of our alternative assets, however, decreased slightly to 15.3% at the end of 2020 from 15.6% the previous year due to high returns on traditional assets (14.6%) last year.

  • Asset allocation (2020)

    (USD billion, %)

    Asset allocation (2019)
    Category NAV Asset allocation**
    Total 183.1 100.0
    Traditional assets Equities 78.2 42.7
    Fixed income 64.5 35.2
    Other* 12.5 6.8
    Subtotal 155.2 84.7
    Alternative assets Private equity 11.8 6.5
    Real estate and infrastructure 10.2 5.6
    Hedge funds 5.1 2.8
    Cash equivalent 0.8 0.4
    Subtotal 27.9 15.3
    • * “Other” refers to inflation-linked bonds, cash, hybrid securities, etc.
    • ** NAV basis
  • Asset allocation by year

    (%)

    Asset allocation by year
    Category 2019 2020
    Total 100.0 100.0
    Equities 40.8 42.7
    Fixed income 35.5 35.2
    Alternative assets 15.6 15.3
    Other 8.1 6.8
  • Assets under management by year

    (USD billion)

    Assets under management by year
    2016 2017 2018 2019 2020
    Cumulative investment* 106.8 115.8 136.7 137.1 161.3
    NAV 110.8 134.1 131.6 157.3 181.3
    Accumulated gains 15.8 34.1 29.0 49.2 71.0
    • * Sum of NAV at the end of the previous year and annual investment amount
  • Net asset value

    (USD billion)

    • 2016 110.8
    • 2017 134.1
    • 2018 131.6
    • 2019 157.3
    • 2020 183.1
  • Return on total assets

    KIC’s return on assets in 2020 stood at 13.71%, with a five-year annualized return of 8.96% and an annualized return since inception of 5.22%.

    (%)

    Return on total assets
    Category 2016 2017 2018 2019 2020
    Return on total assets
    (before fees)
    4.35 16.42 -3.66 15.39 13.71
    Return on total assets
    (after fees)
    4.21 16.26 -3.80 15.21 13.52
    Annualized return
    since inception
    3.34 4.45 3.76 4.60 5.22
  • Return on traditional aseets

    The return on traditional assets in 2020 was 14.62%, +144 bps compared to the benchmark.

    Return on traditional aseets
    Category 2016 2017 2018 2019 2020 Annualized return for the past five years(’16-’20) Annualized return since inception
    Total Return (%) 3.96 16.71 -5.64 16.62 14.62 8.88 5.60
    Excess return (bp) -95 129 -81 33 144 19 26
    Equities Return (%) 5.85 25.50 -9.55 27.52 19.16 12.79 5.58
    Excess return (bp) -232 122 -71 6 261 7 5
    Fixed income Return (%) 1.46 8.00 -1.32 7.53 9.88 5.02 4.38
    Excess return (bp) 29 72 -13 73 78 48 32
  • Return on alternative assets

    Annualized return since inception: 7.70%

    • Private equity
      • Inception : Sept. 16, 2009
      • Annualized return since inception : 9.26 %
    • Real estate‧infrastructure
      • Inception : March 15, 2010
      • Annualized return since inception : 7.25 %
    • Hedge funds
      • Inception : Jan. 29, 2010
      • Annualized return since inception : 5.16 %
    • Alternative asset total *
      • Annualized return since inception : 7.70 %

    * Total includes commodities (categorized as traditional assets since April 2011)

  • Benchmark for each asset class
    Benchmark for each asset class
    Asset class Benchmark
    Equities Morgan Stanley Capital International All Country World Index ex Korea (unhedged)
    Fixed income Bloomberg Barclays Global Aggregate Index ex KRW ex Korea (unhedged)
    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 US Treasury Bill + 3.5%, 1 month lagged
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