Reduction of National Pension Overseas Bond Discretionary Management Range: 50~90% -> 40~80%

[Jeonju (Jeonbuk) = Asia Economy Reporter Park So-yeon] The National Pension Service has decided to reduce the scope of outsourced management of overseas bonds and increase the proportion of direct management.

The National Pension Fund Management Committee (Fund Committee), the highest decision-making body of the National Pension Service, held the 8th meeting of 2021 on the 25th at the National Pension Fund Management Headquarters in Jeonju, Jeonbuk, and approved the 'Adjustment Plan for the Scope of Outsourced Management of Overseas Bonds of the National Pension Fund,' which adjusts the outsourcing range from 50?90% to 40?80%.

The purpose of this ratio adjustment is to increase the proportion of direct management of overseas bonds to reduce outsourcing fees and enhance the direct management capabilities of the Fund Management Headquarters.

The Fund Committee explained that overseas bonds can be expected to yield high returns when actively managed, and when buying opportunities arise in overseas stocks and overseas alternative investment areas, liquidity can be supplied, so it is necessary to increase the proportion of direct management by the Fund Management Headquarters.

Meanwhile, as of the end of the second quarter (April to June) this year, the National Pension Fund reserves were recorded at 908.3 trillion won, an increase of 74.5 trillion won compared to the end of last year.

The fund reserves are expected to exceed 1,000 trillion won next year.

According to the Fund Management Headquarters, the fund's rate of return for the first half of this year was 7.49%, and the cumulative operating profit since the fund's establishment in 1988 was recorded at 502.3 trillion won.

Looking at each asset, domestic stocks and overseas stocks recorded favorable returns of 15.59% and 17.73%, respectively, in the first half, supported by continuous economic stimulus policies and the global economic recovery due to COVID-19 vaccine distribution.

Domestic bonds yielded -1.16% due to inflation concerns from economic stimulus measures, while overseas bonds showed a 2.27% return due to the rise in the won-dollar exchange rate.

Alternative investment returns such as real estate were tentatively recorded at 4.97%. The annual return of alternative investment assets mostly reflects provisional figures based only on interest, dividends, and trading gains and losses, and the final annual return, including asset fair value evaluation, will be confirmed in June next year.

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