This year's investment return of the National Pension fund is expected to reach 20%. It would be the highest return since the National Pension system was introduced in 1998.
According to the Ministry of Health and Welfare on the 29th, this year's provisional return on the National Pension fund's management is expected to reach 20%, surpassing last year's return (15%). The final return, which will reflect the "alternative investment fair value assessment" that values alternative investment asset classes such as private equity, real estate, and infrastructure at market prices, will be announced in Feb. next year.
Domestic stocks delivered a 78% return, the highest among all asset classes. It is the highest return on domestic stocks in the past 10 years. They were followed by ▲ overseas stocks 25% ▲ alternative investments 8% ▲ overseas bonds 7% ▲ domestic bonds 1%.
As returns rose, the fund's size increased 21.4% (about 260 trillion won) from 1,213 trillion won at the end of last year to 1,473 trillion won.
A ministry official said, "If premium revenue increases as the contribution rate is adjusted going forward, the size of the fund will expand further," adding, "We will improve the asset allocation framework and expand infrastructure such as professional investment personnel to raise returns." Under the National Pension Act revised in Apr., the National Pension contribution rate will rise from the current 9% to 9.5% next year.