Teachers' Mutual Aid Association Assets Surpass 40 Trillion Won... 9.1% Return Recorded in First Half

[Asia Economy Reporter So-yeon Park] The fund management assets of the Korea Teachers' Credit Union have surpassed 40 trillion won.

Kim Ho-hyun, Chief Fund Manager of the Korea Teachers' Credit Union, stated on the 19th, "As of the first half of this year, the fund management assets amounted to 40.5 trillion won, an increase of 3.8 trillion won compared to the end of last year." The profit reflecting valuation gains and losses was approximately 2.3 trillion won, and the operating yield for the first half of this year was recorded at 9.1%. Kim explained, "The domestic and international stock markets performed well due to expectations of economic recovery, and in the bond sector, active investments in credit funds, which can expect capital gains in a low-interest-rate environment, contributed significantly to the results."

In the corporate finance and alternative investment sectors, past investments were successfully recovered, contributing to profit enhancement. For example, the KHQ No. 3 Fund, invested in at the end of 2013, successfully sold the management rights of the employment portal company 'JobKorea' in March this year, distributing a profit of 98.5 billion won. In overseas corporate finance, the investment in the U.S. software company 'Eli Me,' which manages mortgage loan processes, was sold after one year and three months, yielding a capital gain of 130 billion won, about four times the invested principal in the first half of the year. In the infrastructure sector, the fund 'Aberdeen PPP Infrastructure Fund No. 1,' which invested in public-private partnership infrastructure assets in the U.S. and Australia, was sold, generating a profit of 147.4 billion won.

The Teachers' Credit Union plans to continue large-scale domestic and international bond and blind fund investments in the second half of the year. They also disclosed plans to invest a total of 60 billion won in three new socially responsible investment management companies. Kim said, "In the stock sector, we plan to flexibly adjust the proportion of industries and stocks with visible performance improvements, considering macroeconomic conditions, to enhance operating profits." In the domestic bond sector, they plan to invest about 370 billion won by selecting corporate bonds with good profitability relative to credit ratings, and in the overseas bond sector, they will proceed with investments totaling about 570 billion won through structured bonds and discretionary funds.

Kim added, "In the corporate finance sector, we plan to select eight domestic blind PEF management companies through a public competitive process in July, preparing an investment scale of about 475 billion won." He continued, "For domestic and overseas real estate, we plan to expand the proportion of loan-type investments to reduce profit volatility," and added, "If investment opportunities arise in new asset types such as logistics centers or data centers, we will actively incorporate them into the portfolio."

Meanwhile, the Korea Teachers' Credit Union is a welfare institution for teachers established in 1971 with the purpose of stabilizing teachers' lives and improving welfare. This year marks its 50th anniversary. As of the end of 2020, it has about 850,000 members and holds total assets of 45.8 trillion won.

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