The Worst Investment Performance
The National Pension Service (NPS) Investment Management’s investment loss amounted to 8 percent last year. Its assets under management fell below 900 trillion won and it recorded its third annual investment loss since its inception in 1999. The figure is tentative and does not reflect alternative investments. The confirmed figure is scheduled to be announced on Feb. 28 and is likely to be worse.
Its 2022 investment loss is estimated at 80 trillion won or so. The AUM topped 950 trillion won in January last year but fell below 900 trillion won in June and September last year.
In the first half of 2022, the loss was 8 percent and an all-time high of 77 trillion won. The AUM was 882.7 trillion won at the end of June. The loss amounted to 65 trillion won in the domestic and foreign stock markets and its return on bond investment was negative, too. The loss decreased to 48 trillion won at the end of November. Although its return on alternative investment was 10.67 percent until November, last year’s final figure is likely to be lower.
Last year is likely to be the worst year of the agency. Previously, it showed a negative return on investment in 2008 and 2018. The loss was 0.92 percent and 5.9 trillion won in 2018. For reference, its Canadian counterpart recorded an investment loss of 2.2 percent in April to December last year.