Korea Investment CORP

Korea Investment Corp is a sovereign wealth fund of the government of Korea. The corporation was formed out of the KID Act and was launched with a “view to enhance sovereign wealth and contribute to the development of the domestic financial industry,” managing assets of the government and Bank of Korea as well as other public funds defined by the National Finance Act. The corporation would begin launching a variety of investment strategies beginning in 2006 and would separate its strategies into alpha and beta classes by 2009. As Korea Investment Corp grew, it would also add functionality, forming a special investment team in 2010 and beginning its international expansion in 2010 with an office in New York and, subsequently, an office in London in 2011. The company would also launch its global equity investment, in house global fixed income investment, and alternative investment teams during this time. By 2013, the company would surpass $70 billion in total assets under management. The company currently holds over $85 billion in assets under management. Korea Investment Corp originally focused on traditional asset classes, but broadened its investments as it grew to include inflation linked bonds, commodities, hedge funds, special investments, real estate, and emerging markets. Its strategic asset allocations are deliberated by the Steering Committee, and Korea Investment Corp pursues benchmark returns by diversifying investments in various currencies and countries and pursues excess returns through advice management with appropriate levels of risk, respectively beta and alpha. For its traditional assets, Korea Investment Corp rebalances its portfolio at set times to maintain policy weightings and utilize the ex-ante tracking error from active investing compared to the benchmark, adjusting accordingly so that exposures will fall within the set ranges. The company invests most heavily in the financial sector, which alone makes up over a third of its holdings on the NYSE, and also invests in the technology, services, and health care sectors, among others to a lesser degree.