National Pension Service Selects SSBT as Preferred Negotiation Partner for Overseas Custodian Institutions

[Asia Economy Reporter Park So-yeon] The National Pension Service announced on the 6th that it has decided on the preferred negotiation candidates for overseas custodian institutions responsible for the stable custody and management of overseas investment assets of the National Pension Fund starting from 2022.

The Service selected 'State Street Bank And Trust Company (SSBT)' as the first priority and 'The Bank of New York Mellon Corporation (BNYM)' as the second priority.

After posting the announcement regarding the selection of overseas custodian institutions on the Service's website in April, preferred negotiation candidates were selected through the proposal submission and evaluation process.

The Service stated that each institution involved in the negotiations has a history of over 100 years and is recognized as a world-class professional institution in the custody and management of investment assets.

The Service plans to conduct detailed technical negotiations related to the execution of duties with the selected preferred negotiation banks and to finalize contracts with each by the end of this year.

To diversify risks in custody services and ensure stable management of investment assets, the National Pension Service will conduct negotiations in order of priority and enter into separate custody contracts for overseas stocks and overseas bonds. For overseas alternative investment assets, the institution responsible for overseas stocks will concurrently perform custody duties.

As of the end of April 2021, the National Pension Service has invested 339.9 trillion KRW overseas, which corresponds to 38.5% of the fund reserves of 872 trillion KRW. This consists of stocks worth 222.4 trillion KRW, bonds worth 48.7 trillion KRW, and alternative investments worth 68.7 trillion KRW.

Chairman Kim Yong-jin said, "With the National Pension Fund approaching 1000 trillion KRW, we will systematically expand overseas investments to enhance long-term returns, and we will continue to make every effort to ensure that the custody and management of the public’s precious retirement funds are conducted more stably."

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