National Pension Fund Records -5.29% Return by October... Losses Total 51 Trillion Won

[Image source=Yonhap News]

[Asia Economy Reporter Park Soyeon] The National Pension Service recorded an operating return of -5.29% from the beginning of this year to the end of October, resulting in a loss of approximately 51 trillion won so far this year.

According to the disclosure by the National Pension Fund Management Headquarters on the 31st, the overall return of the National Pension Fund as of the end of October this year was tentatively calculated at -5.29%.

By asset type, domestic stocks had the lowest return at -20.45%, and domestic bonds also recorded -8.21%. On the other hand, alternative investments (15.64%), foreign bonds (4.74%), and foreign stocks (-4.84%) showed relatively favorable returns.

Overall, the operating return declined, but foreign stock and bond returns outperformed domestic returns, benefiting from exchange rate gains.

From the beginning of the year to the end of October, the KOSPI rose by -22.97%, and the global stock market rose by -20.34%. The KRW-USD exchange rate increased by 19.72%.

During the same period, the 3-year government bond yield rose by 238.7 basis points, and the 10-year yield rose by 199.2 basis points. With three rate hikes of 0.75 basis points each this year in the U.S., the 10-year U.S. Treasury yield also surged by 253.8 basis points.

It is also analyzed that alternative investment assets reflected interest and dividend income as well as foreign currency translation gains due to the rise in the KRW-USD exchange rate. Since fair value evaluation is conducted once a year at the end of the year, the fair value evaluation amount was not reflected in the mid-year return announcement.

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