National Pension Service Selects Allspring, BlackRock, and Others as Multi-Asset Delegated Managers

[Asia Economy Reporter Park Jihwan] The National Pension Service Fund Management Headquarters is enhancing its tactical asset allocation (TAA) capabilities through multi-asset delegated management.

The Fund Management Headquarters announced on the 28th that it selected three global asset management firms?Allspring, BlackRock, and MSIM?as multi-asset delegated managers and executed $500 million per firm (a total of $1.5 billion) by the end of last year. This is the first time the Fund Management Headquarters has engaged in multi-asset delegated investment.

The multi-asset strategy is an investment technique that invests in multiple assets such as stocks, bonds, currencies, and commodities, actively adjusting asset allocation according to market conditions to enhance returns. It is characterized by the ability to employ diverse and detailed asset allocation strategies.

In the first half of last year, the Fund Management Headquarters conducted a first evaluation of overseas multi-asset strategy managers, followed by a second quantitative and qualitative evaluation. After due diligence, three multi-asset delegated managers were finally selected in the second half of the year.

This multi-asset delegated management is a preliminary step toward introducing the TAA overlay. The TAA overlay allows indirect adjustment of the weights of held stock and bond assets without directly trading them. It is an operational system adopted by many advanced pension funds in North America and Europe.

Upon system implementation, it is expected to respond quickly and flexibly to the market while minimizing portfolio changes.

Additionally, it aims to improve operational efficiency by minimizing market impact and opportunity costs, as well as diversify investments through expansion and segmentation of investment assets.

The Fund Management Headquarters plans to strengthen TAA capabilities and stabilize the TAA overlay system early through active collaboration with advanced asset managers.

Ahn Hyojun, head of the Fund Management Headquarters, explained, "The National Pension Service has agreed with the new delegated managers to build a platform for enhancing the TAA operational system, including economic and market indicators and quantitative asset allocation models." He added, "We also plan to operate an enhanced partnership program to facilitate close cooperation with them."

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