Investment Strategy
Korea Teachers’ Pension (KTP) manages approximately $15 billion on behalf of approximately 500,000 current and former teachers across South Korea’s public and private school systems. KTP is one of several specialized public pension funds in South Korea, alongside the much larger NPS and the government employees’ pension (GEPS).
The investment strategy has been evolving from a domestic-focused, conservative portfolio toward a more globally diversified approach with increasing alternatives exposure. KTP targets approximately 10% in alternatives across private equity, real estate, and infrastructure. The fund has been building relationships with both domestic Korean and international investment managers.
Private equity investments include commitments to Korean and international buyout and growth equity managers. Real estate investments span domestic Korean property and selective international diversification. Infrastructure has been a growing area of interest, with investments in energy and transportation assets.
How to Approach
KTP operates from Daejeon and manages its investment program through a combination of internal capabilities and external mandates. The fund is smaller and less internationally recognized than NPS, which can create opportunities for GPs to establish relationships without the intense competition that characterizes access to NPS capital.
GPs should approach KTP’s investment team directly or through Korean institutional investor networks. Having Korean-speaking capabilities or working with local advisors can facilitate the process. KTP is building its alternatives program and may be open to a range of fund sizes and strategies. The fund attends Korean and Asian institutional investor conferences.
Frequently Asked Questions
How much does KTP allocate to alternatives?
KTP allocates approximately 10% of its portfolio to alternatives including private equity, real estate, and infrastructure. The fund has been expanding its alternatives program following the broader trend among Korean pension funds to diversify beyond traditional assets.
How can fund managers approach KTP?
KTP's investment team is based in Daejeon. GPs should approach the fund management division directly or work through Korean placement agents. KTP's smaller scale compared to NPS means the fund may be open to a wider range of fund sizes and strategies.
What is KTP's investment mandate?
KTP manages retirement savings for approximately 500,000 current and former teachers across South Korea's public and private school systems. The fund's investment mandate focuses on generating stable long-term returns while managing risk prudently. The fund has been diversifying its portfolio toward global investments and alternatives.
