Seoul-based Shinhan BNP Paribas Asset Management said Tuesday it has started to work as a fund manager for the National Health Insurance Service’s 1.4 trillion won ($1.14 billion) alternative investment for four years. 

Shinhan BNP Paribas is one of the two lead fund managers, along with fellow Seoul-based investment house KB Asset Management. The two partners, selected in late April, will manage 700 billion won of assets each and choose more external partners to join their funds of funds.

This marks the first case where a Korean institutional investor is outsourcing its alternative investment portfolio management, teaming up with external partners.

Shinhan BNP Paribas cited its growing investment outsourcing capability despite being a latecomer to the scene. It has been managing the 2 trillion-won Radioactive Waste Management Fund by the Korea Radioactive Waste Agency since 2018. It was also advising Pohang University of Science and Technology’s asset management starting 2018.

The assets Shinhan BNP Paribas is managing stand at 63.1 trillion won, fifth-highest in the country. The company is a 65:35 joint venture of Shinhan Financial Group and Paris-based BNP Paribas Asset Management.

By Son Ji-hyoung (consnow@heraldcorp.com)