Judge's report

National Pension Service (NPS) marries a top-down macro strategy with disciplined implementation to construct a strong globally diversified portfolio that delivers returns consistent with its investment objectives. By focusing on long-term trends, themes and global markets while simultaneously being open to creative investment structures, fee mitigation techniques, and risk management best practices, NPS sets a strong example for other global pension funds of similar size.

The real estate allocation has been growing and its has constructed a portfolio that has geographical, sector and risk-return diversification. The evolution of the portfolio is underpinned by trend-based driver analysis, which has led to taking positions in more niche segments. It has also taken a different approach to types of vehicles, enabling it to reduce costs.