National Pension Service CIO Ahn Hyo-jun Retires Today... Longest-Serving CIO with Record-High Returns

'Capital Market President' 국민연금 CIO, Key Player Behind 3-Year Average Return Over 10%
CIO Vacancy, Interim Acting System for Now... Successor Selection Expected to Accelerate in November

[Asia Economy Reporter Kwangho Lee] Ahn Hyojun, Chief Investment Officer (CIO) of the National Pension Service (NPS) Fund Management Headquarters, is stepping down after completing his four-year term. He is expected to be recorded as the longest-serving CIO with the highest returns in NPS history.

According to the investment banking (IB) industry on the 18th, Ahn Hyojun, CIO of the NPS Fund Management Headquarters, held his retirement ceremony today, marking the end of his four-year term. Ahn took office in October 2018 and completed his initial two-year term by October 2020, then renewed his contract twice for one year each, earning the title of longest-serving CIO.

Ahn built his asset management career through securities firms such as Seoul Securities, Daewoo Securities, Daiwa Securities, as well as ANZ Bank and Kyobo AXA Asset Management before being recruited by the NPS in 2010 as an international finance expert. After serving as head of domestic and overseas equity divisions at the NPS Fund Management Headquarters, he moved to BNK Financial Group as Global Head (President) in 2017. He resumed the CIO position at NPS in 2018.

Ahn consistently worked to prepare for the “NPS 1000 trillion won era.” After his appointment, NPS recorded a return of 11.31% in 2019, the highest since the establishment of the Fund Management Headquarters in 1999. The following year, the return was 9.7%. Last year, the return was 10.86%, resulting in an unprecedented three-year average return in the 10% range.

During his tenure, the fund size grew from 638.781 trillion won at the end of 2018 to 915.95 trillion won as of the end of July this year, an increase of nearly 280 trillion won. At the end of last year, fund assets even reached 948.7 trillion won. This has led to evaluations that he successfully concluded his role as head of the Fund Management Headquarters.

The NPS CIO position is regarded as highly important, often called the “President of the Capital Market.” Moreover, the weight of responsibility has increased as the capital managed approaches 100 trillion won.

During his tenure, Ahn expanded the NPS portfolio through various initiatives. In 2020, he reorganized the teams under the domestic and overseas divisions into Asia, Americas, and Europe teams, focusing on cooperation with overseas pension funds and investment firms. He expanded the pipeline with the goal of allocating half of the investment portfolio to overseas investments.

He formed a partnership with the Dutch pension fund APG, which has abundant alternative asset information, and began joint investments in real assets in Europe and Asia. Investments were made in Australian university dormitory facilities and Portugal’s largest highway operator at a 50:50 ratio.

He also established a 2.8 trillion won joint venture (JV) fund with global insurer Allianz Group to invest in landmark real estate in major Asian cities. The fund aimed to invest in mixed-use buildings including residential, office, and logistics facilities.

With Ahn stepping down, interest in the next CIO is rising. However, the NPS plans to maintain an acting leadership system for the time being. In this context, Park Sungtae, head of the Strategy Division, is being mentioned. He joined NPS when the Fund Management Headquarters was established and has been with the fund for over 20 years.

Recently, Park signed a five-year contract, which has attracted attention. NPS Fund Management staff are contract professionals, typically signing three-year contracts, but Park’s five-year contract suggests strong performance. It is also noted that this contract is unrelated to the appointment of the Fund Management Headquarters head, adding further weight to the matter.

Meanwhile, the selection of Ahn’s successor is expected to begin in earnest as early as November.

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