The National Pension Service Investment Management announced on Feb. 27 that its annual investment return reached 11.3 percent last year, the highest since its establishment in November 1999.
At the end of last year, foreign stocks accounted for 22.6 percent of its total investment, the organization posted an investment return of 30.63 percent with the stocks, and the appraised value of the stocks was 166.5 trillion won. In addition, it posted a return of 11.85 percent with foreign bonds, which constituted 4.2 percent of its total investment.
The rate of return of the organization’s domestic stocks, which accounted for 18 percent, was 12.58 percent with an appraised value of 132.3 trillion won. That of its domestic bonds, which constituted 43.8 percent, stood at 3.61 percent. On the other hand, the organization showed a return of 9.62 percent with alternative investment assets, which represented 11.5 percent of its total investment.
The organization is reducing the ratio of bonds to its total investment. Specifically, it fell from 77.5 percent to 60 percent from 2009 to 2014 and then to 48 percent in 2019. During the same period, the ratio of stocks rose from 17.8 percent to 29.9 percent and 40.6 percent and the ratio of alternative investment rose from 4.5 percent to 9.9 percent and 11.5 percent.
The size of the national pension, which increased by 97.9 trillion won to 736.7 trillion won in 2019, is estimated to reach 1,000 trillion won in 2024 and 1,700 trillion won in 2041. The National Pension Service is currently working on a new overseas investment plan so that the return of its investment can be maximized based on abundant overseas investment opportunities.