Korean Investment Corporation taps FTSE index strategies
The Korean Investment Corporation (KIC) has selected three FTSE index strategies to help diversify its public markets investment programme. KIC focussed on three FTSE developed non market-cap weighted index strategies and is expected to implement some combination of these strategies in 2011.
KIC was established as Korea’s sovereign wealth fund in 2005 to protect and grow capital with an appropriate level of risk for the wealth of future generations of the country. Assets under management were reported to be USD37 billion as of end of 2010.
FTSE has successfully introduced non market-cap weighted indices to the retail market in Korea and KIC is the first institutional investor in the country to adopt such strategies. In doing so, KIC joins a range of sovereign wealth funds and leading institutional investors across Asia who have made allocations to non market-cap weighted index strategies. FTSE offers the largest range of non market-cap weighted indices and offers asset allocators a wide variety of solutions to match their individual investment philosophies and practices.
Paul Hoff, director of business development in Asia for FTSE Group, says, “FTSE strives to work closely with asset allocators across Asia to provide them with a variety of index strategies to help meet their unique needs and investment challenges. We are very pleased to be working with a globally recognized asset management company of the calibre of KIC and we believe that KIC’s selection of several FTSE index strategies highlights the broadening influence of FTSE as global solutions provider.”