National Pension Fund Surpasses 900 Trillion Won in Reserves for Q2 (Update)

[Jeonju (Jeonbuk) = Asia Economy Reporter Park Soyeon] The National Pension Service Fund Management Headquarters announced on the 25th that as of the end of the second quarter of 2021, the National Pension Fund reserves increased by 74.5 trillion won compared to the end of last year, reaching 908.3 trillion won (provisional), and the rate of return was recorded at 7.49% (provisional).

Since the establishment of the National Pension Fund in 1988, the cumulative operating profit until the end of June 2021 was recorded at 502.3 trillion won (provisional).

Looking at each asset, stocks contributed positively to the overall fund return as major domestic and overseas stock markets rose during the first half of the year, while bonds saw a slight decline in returns due to the impact of rising interest rates.

Domestic and overseas stocks recorded favorable returns of 15.59% and 17.73%, respectively, supported by continuous economic stimulus policies and the global economic recovery following the distribution of COVID-19 vaccines.

Domestic bonds recorded a return of -1.16% from the beginning of the year to May due to concerns over inflation expansion caused by economic stimulus measures, but the decline in long-term interest rates in June, amid easing inflation concerns, reduced the loss. Overseas bonds recorded a return of 2.27% due to the rise in the won-dollar exchange rate.

Meanwhile, the annual return on alternative investment assets mostly reflects provisional figures based only on interest, dividends, and trading gains and losses. Fair value evaluation of alternative investment assets is conducted once a year at the end of the year, and the final annual return is confirmed through the annual performance evaluation resolved at the end of June the following year.

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