The Morgan Stanley Capital International All Country World Index ex Korea (unhedged) serves as the benchmark for the stock portfolio while the Bloomberg Barclays Global Aggregate Index ex KRW ex Korea (unhedged) is the benchmark for the bond portfolio.
Other indeces are also applied for each of asset classes.
Presently, KIC has offices in New York (opened in July 2010), London (opened in December 2011) and Sinapore (opened in September 2017).
Overseas offices' responsibilities include research and analysis into international finance and capital markets, trading of traditional assets in the regional markets (bonds, stocks), uncovering investment opportunities in alternative investments/monitoring alternative investment portfolios, and pursuing cooperation with related organizations.
KIC selects external asset managers taking into consideration the expertise, transparency and efficiency of their decision-making process.
The selection process is broadly classified into the primary review, secondary review and final approval. Thorough review based on this three-stage procedure ensures transparency and objectivity.
1) The primary review checks for investment capabilities based on the review of proposals submitted by external managers and due diligence conducted by the external fund management team.
2) In the secondary review, the final candidates are chosen by the Investment Working Committee, which comprises the Chief Investment Officer (CIO) and investment and risk management experts of KIC.
3) Selections are then finally approved by the Investment Committee (IC), after a review from the IC meeting.