Bank of Korea shifts entrusted assets from U.S. to global bonds

  • Bank of Korea will reduce passive equity mandates and introduce a global aggregate bond strategy.
  • The new strategy will expand coverage from 10,000 U.S. securities to 30,000 across 28 countries.
  • Domestic managers’ entrusted assets reached $3.21 billion in 2025, up from $100 million in 2012.

The Bank of Korea will overhaul its foreign-exchange reserve outsourcing program for domestic asset managers, reducing passive developed-market equity mandates and expanding bond investments from a U.S.-focused strategy to a Global Aggregate approach covering about 30,000 securities across 28 countries. Announced on the 16th, the first overhaul since 2019 is designed to shift support for South Korean asset managers from quantitative expansion toward qualitative capability building. The BOK said entrusted assets reached $3.21 billion in 2025, up from $100 million in 2012, while the number of managers rose to five from two. The overall stock-bond allocation of its foreign assets will remain unchanged, with some equity mandates moving to international managers and selected bond assets shifting to domestic firms.

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