Police Mutual Aid Association Managing 4 Trillion Won, Strengthening Operational Expertise

Restructuring of Investment Division by Segment... Plans to Establish Two New Teams for Bond Management and Alternative Investments

[Asia Economy Reporter Park Soyeon] The Police Mutual Aid Association is subdividing its fund management organization by establishing new teams for bond management and alternative investments in each division. Through this organizational restructuring, it plans to enhance asset management expertise.

According to the financial investment industry on the 16th, the Police Mutual Aid Association is promoting an organizational restructuring centered on establishing a bond management team and an alternative investment team 2 within the Financial Investment Headquarters, which is the asset management organization. Currently, the Police Mutual Aid Association has only two teams under the Financial Investment Headquarters responsible for asset management: the securities management team and the alternative investment team. In addition, it is likely to expand to a total of four teams by adding the bond management team and alternative investment team 2.

A senior official of the Police Mutual Aid Association said, "Agreement with the delegates is a priority for the organizational restructuring, so we plan to discuss the restructuring agenda at this month's Operations Committee," adding, "Although decision-making in the mutual aid association takes some time, we aim to complete the restructuring by the first half of the year at the latest."

The Police Mutual Aid Association managed stocks, funds, and bond investments simultaneously within the securities management team. The managed assets were mainly concentrated in bond investments. As of the end of 2020, the stock ratio was 3.7%, only about one-ninth of bonds (33.4%). Domestic stocks accounted for KRW 113.3 billion, making up most of the total stock assets (KRW 133.7 billion). Overseas stocks were KRW 20.4 billion, representing only 0.6% of total assets. Through the organizational restructuring, the strategy is to further strengthen expertise in each field and diversify management strategies into stocks and alternative investments.

This year, the Police Mutual Aid Association plans to increase the stock ratio to around 6%, focusing on public offering stocks and venture funds. In particular, it will increase fund allocation to public offering stock funds investing in 4th industrial revolution-related sectors such as digital platforms, secondary batteries, and hydrogen energy. Recently, the asset size of the Police Mutual Aid Association has steadily increased, reaching KRW 3.0717 trillion in 2018, KRW 3.5519 trillion in 2019, and KRW 4.207 trillion in 2020. Investment returns have been stable, with 4.5% in 2018, 5.5% in 2019, and 5.2% in 2020. Last year's returns are also estimated to have recorded the 5% range.

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