Police Mutual Aid Association to Make 1 Trillion Won New Investments This Year ‥ Reduce Bonds, Increase Alternatives and Stocks

by Park Soyeon

Published 21 Feb.2021 14:48(KST)

Updated 20 Jul.2023 13:58(KST)

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[Asia Economy Reporter Park Soyeon] The Police Mutual Aid Association will proceed with new investments worth 1 trillion won this year.

According to the financial investment industry on the 21st, the Police Mutual Aid Association decided to proceed with new investments totaling 1.088 trillion won through the asset allocation plan established in 2021.

A total of 647.5 billion won will be executed in financial investment products such as bonds, stocks, and alternative investments. Among these, the largest amount of 322.6 billion won (29.7%) will be invested in alternative investments, including PE, corporate loans, SOC, and power plants.

Next, 221.3 billion won (20.3%) will be allocated to general bonds and structured bonds. New investments of 103.6 billion won (9.5%) will be made in direct and indirect stock investments. For general business such as business investment and business development, 440.5 billion won (40.5%) will be executed.

The Police Mutual Aid Association forecasted growth in 2021 due to the base effect from the contraction in 2020 caused by COVID-19. It predicted that low interest rates would continue due to the maintenance of accommodative monetary policies by various countries.

In response, it explained that it established an asset allocation plan to reduce the proportion of bonds and expand the proportions of alternatives and stocks. Based on this asset allocation plan, the association finalized the detailed plan for profit-making businesses in 2021 and incorporated it into the regular budget.

Meanwhile, the Police Mutual Aid Association will hold a delegates' meeting on the 25th at the Jarang Building of the Police Mutual Aid Association in Mapo-gu, Seoul, to finalize the selection of the candidate for the Director of Financial Investment. The candidate selected on that day will be finally appointed after approval by the Commissioner of the National Police Agency and other procedures.