National Pension Service Reports First Quarter Return of Minus (-) 2.66%

[Asia Economy Reporter Park So-yeon] The National Pension Service Fund Management Headquarters announced on the 27th that as of the end of the first quarter of 2022, the National Pension Fund reserves were tentatively estimated at 928.7 trillion won, with a rate of return of -2.66%.

The negative performance of the fund management return was due to concerns over monetary tightening by various countries and the deterioration of domestic and international stock markets caused by the Russia-Ukraine geopolitical issues.

The rate of return by asset class in the first quarter was domestic stocks -5.38%, foreign stocks -2.98%, domestic bonds -2.87%, foreign bonds -3.00%, and alternative investments 2.36%.

Concerns about inflation and the acceleration of monetary tightening by the U.S. Federal Reserve led to increased volatility in domestic and international stock markets and rising bond yields, which contributed to the decline in returns on the fund’s stocks and bonds.

On the other hand, exchange gains due to the strong dollar helped partially offset the decline in returns on foreign assets.

Rising interest rates and inflation concerns due to caution over monetary policies in various countries worsened the investment sentiment of financial market participants worldwide, including in Korea.

Due to the sharp decline in global stock markets, the operating returns of overseas pension funds also fell, and among major pension funds that disclosed first-quarter results, the performance of the National Pension Service was relatively favorable.

A National Pension Service official said, "As a long-term investor, we will make every effort in risk management and strive to capture new investment opportunities to contribute to the stability of pension finances through long-term profitability improvement."

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