In the first quarter of this year, the National Pension Fund's revenue rate was recorded at 0.87%. It seems to have performed well even in the recent downturn of the stock market caused by President Donald Trump's tariff war.
The National Pension Fund Management Headquarters announced that the fund management revenue, including domestic and foreign stocks, bonds, and alternative investment revenue for the first quarter of this year, amounted to 10.6107 trillion won, with a revenue rate of 0.87% (preliminary, amount-weighted revenue rate) as of the 30th.
By asset type, domestic stocks recorded 4.97%, while overseas stocks recorded -1.56%. Investor sentiment was dampened by the effects of the Trump administration's tariff war, but the revenue rate of the National Pension exceeded the index increase.
Regarding domestic stocks, the management headquarters said, 'Despite global instability, we achieved solid performance thanks to the attractiveness of undervalued stock prices, favorable supply and demand conditions, and profit expectations,' adding that it contributed to the overall revenue rate of the fund.
In the first quarter, domestic bonds showed a revenue rate of 2.03%, while overseas bonds showed a rate of 1.05%. The management headquarters noted that 'the market interest rates for domestic and foreign bonds have fallen due to uncertainties regarding U.S. policies and fears of economic slowdown,' further stating that 'in particular, domestic bond rates decreased due to the Bank of Korea's interest rate cut in February, which helped bond investment revenue remain solid.'
The revenue rate of alternative investments was recorded at 1.32%. The National Pension stated, 'Alternative investments reflect the revenue gained from interest and dividends, including fluctuations in the won-dollar exchange rate, which have been reflected in profits and losses.'
As of the first quarter of this year, the National Pension Fund's reserve fund was recorded at 1,226.8 trillion won. Specifically, this includes 150.9 trillion won in domestic stocks, 431.4 trillion won in overseas stocks, 338.6 trillion won in domestic bonds, 90 trillion won in overseas bonds, 213.6 trillion won in alternative investments, and 18 trillion won in short-term funds.
When the National Pension was launched in January 1988, the fund reserves were at the level of 530 billion won, which surpassed 100 trillion won in 2003, 200 trillion won in 2007, and 300 trillion won in 2010. Since then, it has grown to 427 trillion won in 2013, 621 trillion won in 2017, and 1,036 trillion won in 2023.
Kim Tae-hyun, the chairman of the National Pension Service (NPS), said, 'The global investment conditions centered on the United States are challenging this year,' adding that 'the National Pension will continue efforts to diversify investments to achieve both profitability and stability as a long-term investor managing the public's retirement funds.'