The National Pension Service (NPS) Fund Management Center said on the 29th that the National Pension Service posted an investment return in the 4% range in the first quarter of this year.
As of the end of March in the first quarter, the National Pension Fund's reserves totaled 1,526.1 trillion won. That was up 68 trillion won from the end of the previous year.
The first-quarter rate of return was provisionally tallied at 4.42% (money-weighted return). According to the National Pension Service, this is high even compared with major overseas pension funds. Norway's GPFG posted -1.9%, and the Netherlands' ABP posted -0.5%.
By asset class, returns were 21.67% for domestic stocks, -0.11% for overseas stocks, -2.03% for domestic bonds, 4.98% for overseas bonds, and 5.27% for alternative investments.
The National Pension Service said that in February this year, as a war between the United States and Iran broke out, investor sentiment in domestic stocks deteriorated and there was some adjustment in the semiconductor-led rally. But it added that double-digit gains were maintained, driving the overall rate of return.
In contrast, overseas stocks saw lower returns amid heightened uncertainty. In addition, domestic bonds recorded lower returns as bond valuations fell while interest rates rose on inflation concerns driven by higher oil prices. Overseas bonds posted positive returns due to a rise in the won-dollar exchange rate.
The return on alternative investment assets mainly reflected interest and dividends revenue and foreign exchange translation gains and losses from exchange rate fluctuations, it said. It also said that fair value assessments were not included in this performance.
Kim Sung-ju, chairman of the National Pension Service (NPS), said, "The first-quarter investment return fell somewhat from 10.26% at the end of February due to the fallout from the Middle East war, but it has now recovered and showed solid performance," adding, "As a long-term investor responsible for the precious retirement of the people, the National Pension Service will do its best to enhance returns with an unwavering investment philosophy and thorough risk management in any difficult situation."