The National Pension Service, known as a 'big player in the capital market,' recorded an operating revenue rate of over 12% from January to November last year. The significant contribution came from overseas stocks, which yielded nearly 30% returns. Domestic stocks, which were the only assets that reported negative (-) returns among the investments made by the National Pension last October, declined further within a month. The fund reserves have surpassed 1,185 trillion won.
According to the National Pension Fund Management Headquarters on the 24th, the fund management revenue rate, including the returns from domestic and overseas stocks, bonds, and alternative investments as of the end of November 2024, was recorded at 12.57% (based on dollar-weighted revenue). The average annual revenue rate since the establishment of the National Pension in 1988 is 5.92%.
By asset class, as of the end of November, domestic stocks recorded -4.94%, while overseas stocks stood at 29.72%. The revenue rate for overseas stocks improved from October (26.52%), whereas the revenue rate for domestic stocks worsened from October (-0.87%). The fund management headquarters analyzed that 'overseas stocks performed well due to the U.S. interest rate cuts and a rally centered on large tech stocks, along with an increase in the won/dollar exchange rate,' while 'domestic stocks declined due to concerns about the performance of major tech stocks.'
As of November, domestic bonds displayed a revenue rate of 5.96%, while overseas bonds recorded 12.03%. The fund management headquarters noted regarding overseas bonds that 'despite a favorable economic indicator boosting market interest rates due to the U.S. interest rate cuts, the operating revenue rate remained good due to the rise in the won/dollar exchange rate.' Regarding domestic bonds, it stated that 'the two interest rate cuts made by the Monetary Policy Committee in October and November maintained a lower interest level than at the beginning of the year, leading to satisfactory operating revenue.'
The revenue rate for alternative investments was 9.32%, and the revenue rate for short-term funds stood at 5.14%. The National Pension Service said, 'The revenue from alternative investment assets mainly comes from interest and dividend revenues as well as foreign exchange gains resulting from the rise in the won/dollar exchange rate.' Alternative investments are assessed at fair value annually at the end of the year. The revenue rate during the year does not reflect the fair value assessment amounts.
As of the end of November last year, the National Pension fund reserves were estimated at 1,185 trillion 521.1 billion won, which was about 15 trillion won more than 1,170 trillion 554 billion won at the end of October. In detail, domestic stocks amounted to 140 trillion 651 billion won, overseas stocks to 420 trillion 492 billion won, domestic bonds to 346 trillion 840 billion won, overseas bonds to 84 trillion 224 billion won, alternative investments to 190 trillion 660 billion won, and short-term funds to 30 trillion 270 billion won. All other categories, except for domestic stocks, increased compared to the previous month.
At the time of the National Pension's launch in January 1988, the fund reserves stood at 530 billion won, surpassing 100 trillion won in 2003, 200 trillion won in 2007, and 300 trillion won in 2010. Since then, the reserves have steadily increased, reaching 427 trillion won in 2013, 621 trillion won in 2017, and 1,036 trillion won in 2023.