[THE INVESTOR] South Korea’s national pension fund, the world’s third-largest with assets of more than 520 trillion won (US$461 billion), is scooping up investments in Europe’s infrastructure, according to a report by Seoul Economic Daily on Aug. 22.

The National Pension Service decided to commit some 250 million euros (US$282 million) in the Macquarie European Infrastructure Fund 5, managed by global asset manager Macquarie. 



The fund plans to raise a total of 600 billion won from Korean institutional investors including the NPS, Military Mutual Aid Association and Yellow Umbrella Mutual Aid.

The latest MEIF will invest in utilities, communications and transport infrastructure in Europe for the next 12 years.

The MEIF 4, which had closed fundraising with 2.75 billion euros in investor commitments in 2013, has been delivering an average yield of 15 percent.

The institutions expect annual returns in the range of 7 percent to 9 percent.

The move comes after the pension fund announced its investment plan for the 2017-2021 period, which highlighted boosting its investments in overseas equities, bonds and properties.

“The NPS may further increase its investment into overseas infrastructure in exchange for stable and predictable returns,” an official at the NPS said.

By Park Han-na (hnpark@heraldcorp.com)