Bearing, Woori, and Truston Asset Management Selected as 국민연금's 'Value-type Delegated Asset Managers'

Selected as Value-Oriented Asset Manager for the First Time in 8 Years Since 2016
Primarily Investing in Undervalued Stocks... Expected to Support 'Value Up'
Industry Expects Approximately 200 Billion KRW Allocated per Company

The National Pension Service Fund Management Headquarters announced on the 19th that it has selected three domestic equity value-type entrusted asset management firms: Bearing Asset Management, Woori Asset Management, and Truston Asset Management.

The National Pension Service selected entrusted asset management firms to discover and invest in domestic equities (companies) that strive to enhance corporate value. Proposals were accepted from asset management companies and investment advisory firms from the 21st to the 29th of last month. The final selection was made through proposal evaluation and oral examination processes.

The scale and timing of fund allocation will be determined considering the portfolio management conditions of the National Pension Fund and market circumstances. As of the end of November 2023, the National Pension Service manages KRW 141 trillion, equivalent to 14.1% of the total fund assets, in the domestic equity sector. Among these, 51.0% of the assets are managed through entrusted management by external specialized institutions.

This is the first time in about eight years since 2016 that the National Pension Service has selected value-type entrusted asset management firms that mainly invest in undervalued stocks. The market expects that approximately KRW 200 billion will be allocated to each entrusted asset management firm. Some view this as the National Pension Service providing support for the 'Corporate Value-Up Program.'

Seo Won-ju, head of the Fund Management Headquarters, stated, “With the selection of domestic equity value-type entrusted asset management firms this time, we expect to generate mid- to long-term excess returns by investing in companies (stocks) whose market value is undervalued,” and added, “We will continue to strive to enhance the long-term profitability of the fund.”