National Pension Service Forms Real Asset Co-Investment Partnership with Dutch Pension Fund

Successful Joint Investment by Australia and Portugal
Fruits of Efforts to Strengthen Global Network

[Asia Economy Reporter Minji Lee] The National Pension Service (NPS) Fund Management Headquarters announced on the 20th that it has achieved results by forming a partnership with the Dutch pension fund APG to actively secure investment opportunities in global prime real assets and jointly invest in the Europe and Pan-Asia regions.

APG is the largest pension fund management institution in the Netherlands, managing and operating assets entrusted by various pension funds in sectors such as private education, construction, and energy, including the management of the Dutch public pension ABP fund. As of the end of 2019, APG's asset management scale was approximately KRW 698 trillion (EUR 538 billion).

NPS and APG share an investment philosophy aimed at enhancing long-term returns and explored practical cooperation methods for over a year. Through visits and meetings, they established a partnership for mutual cooperation, including joint investments.

Despite the conditions posed by the COVID-19 pandemic, they actively pursued the joint discovery of global prime investment destinations, and in August and October, they jointly invested at a 50:50 ratio in a university dormitory facility in Australia and the largest highway operating company in Portugal.

Considering the prolonged global low-interest-rate environment, NPS has been actively promoting structural improvements for the advancement of overseas investments over two years, including reorganizing overseas investment organizations, streamlining investment processes, and expanding global networks.

In response to the increased demand for real assets, intensified competition to discover prime investment destinations, and restrictions on international travel due to the COVID-19 pandemic, NPS focused on expanding channels with major institutions to effectively increase investment opportunities.

Since the year following his appointment, Hyojun Ahn, Head of the Fund Management Headquarters, has visited Canada, the United States, Singapore, the United Kingdom, and the Netherlands, directly communicating with leaders of major pension funds and management institutions to discuss mutual cooperation methods. As a result, following the strategic partnership signed with Allianz Group, the world's largest real estate investor, in June, this time, through the partnership with APG, they succeeded in joint investments in real assets. Going forward, they plan to continuously increase joint investment opportunities by expanding networks with global leader groups.

Hyojun Ahn, Head of the Fund Management Headquarters, said, “NPS will share investment experiences in real assets through partnerships with large global institutional investors who share common goals,” adding, “We expect to secure a competitive advantage in terms of investment scale and costs, thereby preempting investment opportunities in prime real assets.” He further stated, “We plan to accelerate the long-term return enhancement of the fund by strengthening cooperative exchanges with global leading institutions.”

Ronald Buester, CEO of APG, said, “Through the partnership with NPS, APG can access attractive investment opportunities that are difficult to realize alone more advantageously,” and added, “We expect this to lead to positive long-term investment performance.”

This content was produced with the assistance of AI translation services.