National Pension, earned 79 trillion won in 4 months…
The National Pension Service overcame the sluggish valuation loss of 80 trillion won last year and earned 79.4 trillion won in operating profits by April of this year, putting the fund scale at 1,000 trillion won in front of its eyes. Thanks to the recovery of the financial market in the first half of this year, the cumulative reserve exceeded 975 trillion won while reducing investment losses in stocks and bonds.
The National Pension Fund Management Headquarters announced on the 29th that it recorded an operating return of 8.63% by April of this year. It increased by 2.28 percentage points from March (6.35%). As of the end of April, the combined fund size of financial and welfare assets was 975.583 trillion won, an increase of 22.428 trillion won from March.
As of the end of April, by asset type, overseas stocks (14.72%), domestic stocks (13.87%), overseas bonds (8.53%), alternative investments (6.24%), and domestic bonds (3.58%) had the highest returns in the order.
The return on the national pension has rebounded as the financial market has shown a calming trend compared to last year. As the stock and bond markets, which are traditional assets, recovered due to easing inflation and expectations of the end of the Fed’s tightening policy, valuation gains rose significantly. As a result, the National Pension Service has been in the black for the first time in 13 months since January 2021 in January of this year, and the overall operating profit rate continues to rise.
In detail, the appraisal of domestic stocks was 140.697 trillion won, earning about 17 trillion won by April of this year. Following a profit of 15 trillion won by March of this year, it maintained a double-digit valuation profit in April. Overseas stocks made more than 36 trillion won in profit, and the valuation was called 281.427 trillion won. Profits from overseas stocks until March were 24 trillion won, which increased 1.5 times in one month.
Domestic and foreign bonds both reaped valuation gains on expectations of adjusting the pace of tightening following the Fed’s rate hike메이저사이트. Compared to last March, the yield rose by 0.33 percentage points for domestic bonds and 3.15 percentage points for overseas bonds.
Alternative investment last JanuaryAfter recording a loss of -1.76 %, it succeeded in turning positive returns from February. Through April, the yield rose 2.75 percentage points between March and one month. However, most of the alternative investment yields are based on interest/dividend income and foreign currency translation gains. Actual investment performance is determined at the beginning of each year by an external professional agency according to the fair value evaluation that reflects the real asset size and rate of return.
Meanwhile, the National Pension Service recorded the worst rate of return of -8.28% last year, and when the three-year average rate of return decreased from 10% to 3.67%, it set out to prepare measures to improve the rate of return this year. At the 3rd Fund Management Committee meeting held on the 23rd of this month, it was discussed recruiting top private experts with asset allocation experience and expanding overseas offices, including in San Francisco, to expand overseas alternative investments.
In order to secure long-term profitability, we are also expanding our workforce. The Fund Management Headquarters plans to select 29 fund management experts in all fields including strategy, stocks, bonds, real estate, infrastructure and private equity in the second half of this year. The National Pension Service plans to provide them with the opportunity to work in offices in New York, London, and Singapore, and to gain experience in overseas investment by dispatching them to overseas private equity funds that have partnered with them.