National pension operation rate of return, overseas stocks 21.3%… Domestic 0.4%

National pension operation rate of return, overseas stocks 21.3%… Domestic 0.4%


Refer Report

A view of the civil affairs office at the Seoul Northern Regional Headquarters of the National Pension Service in Seodaemun-gu, Seoul. Yonhap News

As of the end of September this year, the National Pension Fund’s operating rate of return was found to be 9.18%.

On the 29th, the National Pension Service’s fund management headquarters announced that it recorded an operating rate of return (value-weighted) of 9.18% and an operating profit of 97.2434 trillion won from January to September. Since the introduction of the national pension system in 1988, the cumulative operating profit is 675.2 trillion won, and the fund accumulation, excluding pension benefit expenditures, is 1,146 trillion won as of the end of September.

The rate of return by investment asset was 21.35% for overseas stocks, 6.97% for foreign bonds, 5.05% for alternative investments, 4.09% for domestic bonds, and 0.46% for domestic stocks. As of the end of September, the valuation by investment sector was KRW 145.8 trillion in domestic stocks (12.7% of fund assets), KRW 399.1 trillion in overseas stocks (34.8%), KRW 335.6 trillion in domestic bonds (29.3%), KRW 81.4 trillion in foreign bonds (7.1%), and KRW 179.9 trillion in alternative investments. trillion won (15.7%).

The Fund Management Headquarters explained, “This is the result of the positive effects of the U.S. base interest rate cut, the rise in overseas stocks centered on technology stocks, the rise in the won-dollar exchange rate, and the rise in bond prices.” Looking at the increase and decrease compared to the beginning of this year, as of the end of September, the domestic stock market increase rate was -2.34%, the global stock market (in dollar terms) was +19.40%, and the government bond (3 year) was -34.0bp (1bp=0.01%p). ), US bonds (10 year) are -12.9bp, and the won-dollar exchange rate is +2.34%. The rate of return at the end of the third quarter of alternative investment assets such as real estate, private ventures, and infrastructure mostly reflects interest and dividend income and foreign currency translation profits for the period, and changes in the fair value evaluation of investment assets (scheduled at the end of the year) are not yet reflected.

Senior Reporter Jo Gye-wan kyewan@hani.co.kr

Source: Korean