NPS Failing in Investment
The National Pension Service (NPS) Investment Management announced on Nov. 29 that its return on asset management was negative 7.06 percent for the first three quarters of this year.
National pension assets under its management decreased 68 trillion won from January to September. Its loss was 25.47 percent in the domestic stock market, 9.52 percent in foreign stock markets and 7.53 percent in the domestic bond market. Its return was 6.01 percent and 16.24 percent in foreign bond and alternative investment markets, respectively.
The poor performance has to do with this year's global stock and bond market slumps, fast-rising interest rates, and the prolonged war in Ukraine still affecting supply chains and raw material prices. The loss amounted to negative 8 percent and 77 trillion won, its worst performance ever, in the first half of this year.
At the end of September, the appraised value of the domestic stocks of the NPS was 121.7 trillion won, 13.6 percent of its total assets. Its foreign stocks, 247.5 trillion won in total appraised value, accounted for 27.6 percent of the assets.