National Pension Service Q1 Return -6.08%... "Impact of COVID-19 Stock Market Crash"

[Asia Economy Reporter Park Jihwan] The cumulative return of the National Pension Service (NPS) for the first quarter of this year was recorded at -6.08%. This was due to the sharp decline in domestic and international stock markets caused by the spread of the novel coronavirus infection (COVID-19).

The Fund Management Headquarters of the National Pension Service announced on the 29th that as of the end of March this year, the return on the National Pension Fund was tentatively calculated at -6.08%.

By asset class, based on amount-weighted returns, domestic stocks recorded -18.52%, and overseas stocks -16.90%, both showing negative returns.

On the other hand, domestic bonds yielded 0.89%, overseas bonds 6.85%, and alternative investments 4.24%. This is interpreted as a result of major central banks lowering benchmark interest rates in response to COVID-19.

The National Pension Service explained that due to the global stock market plunge, not only domestic but also overseas pension funds experienced a significant decline in returns.

The NPS stated, "As of this month, the stock market has recovered a considerable portion of the losses incurred during the first quarter," and "returns have also shown a recovery trend sufficient to offset the first quarter's decline."

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