To date, I haven’t really been interested in writing and posting SWF profiles on this site. It’s not that I don’t see the value in sharing basic information with you on these funds, it’s that I’m quite simply too lazy to be bothered. (Or, if the person reading this is my department head or funding provider, I’m far, far too busy with other important things.) Still, once in a while, I find myself looking at documents that offer some really useful, albeit basic, information on these funds. And such was the case today for the Korea Investment Corporation.
I had seen the news this morning that the KIC was partnering with ADIA to do some joint investments, and it inspired me to use my lunch break (I’m just so busy it was the only time I had) to read a paper on the KIC that’s been on my desk for months. As it happens, the paper had some useful charts that I thought I’d share:
1) In case you had any doubts as to the complexity associated with designing and governing a sovereign fund, the following chart should extinguish them. And, relative to others I’ve seen, this isn’t even that complex. Behold:
2) Between 2008 and 2009, the KIC dramatically altered its portfolio allocations. This move towards a more sophisticated approach coincides with the arrival of CIO Scott Kalb. It looks like they added three new asset classes in one year. Is that right?
3) In case you’ve noticed, I’ve been going on and on and on about the in-source vs. outsource debate. In all sincerity, my focus on this topic is NOT due to some secret agenda I have to get sovereigns to outsource or in-source; it’s because the funds have decided this is a huge issue for them. And, as you’ll see below, the KIC is aggressively moving assets in-house. In other words, managers, don’t shoot the messenger! (Note to self: I owe the managers a coherent post highlighting the pitfalls of internal management. This was an attempt, but I acknowledge it was a bit too disjointed.)