이 누리집은 대한민국 공식 전자정부 누리집입니다.

한상넷

비즈니스 정보

Biz News Korea(Eng)

Public Officials Benefit Association to invest $36.6 mn in cat bonds

Collected: 2016.09.08

Distributed: 2016.09.09

Source: Go Direct

South Korea’s pension manager Public Officials Benefit Association together with other institutional investors such as pension service will invest 40 billion won ($36.6 million) in catastrophe bonds in a move to seek higher returns amid prolonged low-interest environment.

According to investment industry sources on Wednesday, Public Officials Benefit Association will select a broker and asset manager to operate its investment in overseas insurance-linked securities. The pension operator will receive application from the candidates by September 23 and select two or more funds to invest in within next month. It is the first time for local institutional investors to bet for returns in catastrophe bonds.

A catastrophe bond also known as cat bond is a type of insurance-linked securities that pays insurance money in case of a catastrophe such as a hurricane or earthquake by issuing bonds. It is usually expected to deliver annual yields of four percent or more if any large-scale disaster does not happen and is considered one of the most favored medium-risk, medium-return investment products.

By Song Gwang-sup

Read in Korean

List

Previous: One-person households is now most common in Korea; gov’t survey shows

Next: More than 1,000 Korean own $1 million or more in overseas accounts