Sahakyeongeum "Achievement of 11.8% Yield and Operating Profit Surpassing 20 Trillion Won"

The Private School Teachers' Pension Service announced on the 22nd that "this year's fund operation yield was recorded at 11.8% as of the 19th, generating an operating profit of 2.5034 trillion KRW, recovering from last year's poor performance and continuing an upward trend."

The Pension Service analyzed, "Despite the global banking crisis and recession concerns at the beginning of this year, both the stock and bond markets showed strength due to expectations of easing U.S. monetary tightening, resulting in favorable operating performance." In particular, reflecting the high interest rate outlook in the financial market this year, the Pension Service has established and is implementing a mid-to-long-term (2023?2027) strategic asset allocation plan to stably generate returns, expanding the domestic bond ratio from 29.6% last year to 34.0%.

Looking at the performance by asset class, domestic and overseas stocks stood out, supported by the resolution of U.S. debt ceiling concerns and solid economic indicators. In the stock sector, domestic stocks achieved a high return of 18.3%, and overseas stocks 22.1%. In the bond sector, despite expectations of the end of U.S. tightening, a coexistence of hopes for inflation easing and caution over interest rate hikes resulted in domestic bonds returning 7.9% and overseas bonds 8.2%. Alternative investments yielded 5.3% domestically and 4.1% overseas.

Song Hajung, Chairman of the Private School Teachers' Pension Service, stated, "Last year, the stock and bond markets unusually declined simultaneously, causing difficulties in management, but this year we recovered all losses from last year (-1.8705 trillion KRW) with an operating profit of 2.5034 trillion KRW and achieved additional gains (632.9 billion KRW)." He added, "We will continue to build a well-diversified balanced portfolio and focus on improving returns and securing pension financial stability through securing new investment opportunities."

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