National Pension Service of Korea Wagers Offices, Hotels Will Recover
The world’s third largest pension fund placed a $1 billion bet on public global real estate with asset manager Russell Investments.
The National Pension Service of Korea (NPS) has awarded a $1 billion global real estate mandate to Russell Investments, betting that offices, hotels, and other public properties will swing back after the world recovers from the pandemic.
The mandate will help the world’s third largest pension fund capitalize on the public real estate markets to complement its private real estate portfolio, as well as improve its risk-adjusted return, and diversify the fund, according to a statement from Scott Kim, head of the real estate investment division at NPS.
South Korea’s National Pension Service (NPS) has appointed US asset manager Russell Investments for a US$1 billion global listed real estate mandate, the pension giant’s latest move to step up exposure to alternative assets.
This is Russell Investments’ second global real estate securities mandate from NPS, the company says in a statement on December 24.
It did not provide more details on either mandate, and spokespersons for the pension fund did not immediately respond to questions from
Asia Asset Management (
AAM).
According to Scott Kim, the head of NPS’s real estate investment division, the new mandate allows the fund “to efficiently capture the potential price discrepancies between public and private real estate markets” and it will also be “an excellent portfolio diversifier”.
S. Korea NPS gives Russell Investments $1 billion for global listed real estate
South Korea s National Pension Service hired Seattle-based
Russell Investmentsto put $1 billion to work in global listed real estate securities, a spokeswoman for the 785 trillion won ($710 billion), Jeonju-based pension giant confirmed Wednesday. The new mandate is designed to take advantage of tactical opportunities, with the majority of that $1 billion to be allocated following periods of market downturns, according to a Russell news release Tuesday.
Scott Kim, the head of NPS real estate investment division, in the news release said the commitment the second the national pension system has awarded to Russell for investment in global real estate securities will allow us to efficiently capture the potential price discrepancies between public and private real estate markets going forward, boosting the fund s risk-adjusted returns. Details of the first allocation could not be learned.
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New mandate focuses on listed real estate as COVID-19 vaccine alters outlook for the asset class
Russell Investments, a leading global investment solutions partner, announced today that South Korea s public pension fund, the National Pension Service (NPS), has partnered with the firm for US$1 billion global listed real estate mandate. This is the second Global Real Estate Securities (GRES) mandate awarded by NPS to Russell Investments as part of their longstanding relationship. We re very honored that our dynamic client NPS has extended their trust in our ability to deliver a beneficial listed real estate solution, said Global Chief Investment Officer