National Pension Service, February End Return -0.45%..."Impact of Sharp Decline in Domestic and Foreign Stocks"

[Asia Economy Reporter Park Jihwan] The National Pension Service's rate of return as of the end of February this year was -0.45%. The impact of the spread of the novel coronavirus infection (COVID-19) also affected the management of the National Pension Fund.

The National Pension Service Fund Management Headquarters announced on the 29th that the rate of return on the National Pension Fund as of the end of February this year was tentatively calculated at -0.45%. Since the establishment of the National Pension Fund, the average annual cumulative return has been 5.21%, with total cumulative earnings amounting to 364.2 trillion KRW.

By asset class, the money-weighted rate of return showed domestic stocks at -7.75%, foreign stocks at -2.95%, both recording negative returns. On the other hand, domestic bonds yielded 2.06%, foreign bonds 7.85%, and alternative investments 3.68%, all posting positive returns.

The National Pension Service evaluated that the domestic stock market showed weakness due to concerns over economic slowdown caused by the increase in COVID-19 confirmed cases. Regarding overseas stock markets, it explained that risk-asset avoidance occurred amid fears of a global COVID-19 pandemic.

A National Pension Service official stated, "Since February, we have been operating a special crisis response team to closely monitor financial market trends," adding, "We plan to respond flexibly to market changes from the perspective of increasing the fund's long-term returns."

This content was produced with the assistance of AI translation services.