Korean POBA to launch $753m fund with Danish pension
Korea’s Public Officials Benefit Association (POBA), a public pension fund based in Seoul, is planning to launch a $753 million joint fund with a Danish pension fund to invest in European real estate.
According to The Korea Economic Daily, the move is part of POBA’s new strategy to increase direct investments in alternative assets. The identity of the Danish pension fund was not specified.
“By cooperating with local pension funds which have a good understanding of the local property market’s situations, we can reduce the risk of loss and invest in high-yielding, decent assets,” Gyeong-Ho Han, CEO of POBA, stated at a news conference.
Early this year, POBA announced it was seeking to diversify its alternatives portfolio in an effort to achieve higher risk-adjusted returns. In July, the South Korean pension fund issued an RFP for fund managers to help lead overseas opportunities.
The fund was reportedly seeking cooperation with European ins