To Boost Rate of Return to 5.2%
The National Pension Service (NPS) is planning to increase its overseas stock investment for next year by 36.1 trillion won. It is going to reduce investment in the South Korean stock market and increase overseas and alternative investments so that a rate of return of 5.2 percent can be achieved in the period of 2021 to 2025.
Its target ratio for the end of 2025 is 15 percent for domestic stock investment, 35 percent for overseas stock investment, 25 percent for domestic bond investment, 15 percent for overseas bond investment, and 15 percent for alternative investment. According to the plan, the overseas stock investment of the NPS will go up from 177.1 trillion won (22.3 percent) to 213.2 trillion won (25.1 percent) in 2021. Likewise, its alternative investment will be increased by 9.4 trillion won, from 13 percent to 13.2 percent, next year.
As for domestic stock investment, the ratio will fall from 17.3 percent to 16.8 percent next year. However, the total amount of investment will increase from 137.7 trillion won to 142.5 trillion won. This planned increase is because the total investment of the NPS in financial markets is scheduled to go up from 794.1 trillion won to 849.4 trillion won in 2021. When it comes to domestic bond investment, the amount will decrease by 10.7 trillion won to 322 trillion won next year.