KIC Holds Overseas Investment Council Meeting... Discusses Macroeconomic Outlook for This Year

"US Economy, the Year of Disinflation in 2024"

[Asia Economy Reporter Kwangho Lee] The sovereign wealth fund Korea Investment Corporation (KIC) is organizing a gathering where domestic public institution overseas investment experts come together to forecast this year's macroeconomy and discuss asset allocation strategies. KIC announced on the 17th that it will hold the 41st meeting of the "Public Institution Overseas Investment Council (Haetuhyeop)" at its headquarters in Jung-gu, Seoul.

Haetuhyeop is a consultative body established in 2014 under KIC's leadership to create synergy in overseas investments among domestic public institutions. Investment officers from 13 institutions, including central associations, mutual aid associations, and pension funds, will attend the meeting.

At the meeting, Santiago Millan, a global macro strategist from Wellington Management, will present on the topic "2023 Global Macroeconomic Outlook." Wellington Management is a global asset management firm based in Boston, USA, managing approximately $1.4 trillion in assets.

Strategist Millan is expected to highlight key issues investors should focus on this year, including ▲high inflation ▲rising commodity prices ▲energy transition.

He stated, "High inflation is significantly influencing central banks' monetary policies worldwide," but also evaluated positively that "signs of easing inflation in the US, better-than-expected market conditions in Europe, and the recovery of emerging markets due to China's reopening are encouraging."

Regarding the US economy, he forecasted, "This year will be the year of disinflation," adding, "As inflation peaks, the Federal Reserve (Fed) will halt its tightening measures."

Following the presentation, attendees spent time discussing the direction of inflation this year, the economic cycle, and investment strategies to respond accordingly.

Lee Hoon, Vice President (CIO) of KIC's Investment Management Division, said, "This year, the global financial market faces concerns over economic slowdown due to persistent inflation and geopolitical conflicts, alongside hopes for economic growth driven by the recovery of daily life in the 'post-COVID' era and technological innovations such as artificial intelligence (AI)." He added, "KIC will expand cooperation with domestic institutional investors through Haetuhyeop to achieve stable performance even in a highly volatile financial market environment."

KIC plans to hold Haetuhyeop quarterly this year and actively share investment information and know-how to help domestic public sector investment institutions discover global investment opportunities. Currently, a total of 26 domestic institutional investors participate as members of Haetuhyeop.