"Stock Expert" NPS Achieves 50% Return, Boosts Assets by 100 Trillion Won in Just One Month

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The total assets under management by the National Pension Service (NPS) surpassed 1,600 trillion won as of February. Of this, the proportion allocated to domestic equities approached 25%.

According to the NPS Fund Management Headquarters on the 29th, the evaluated value of the NPS fund assets stood at 1,610.434 trillion won. After exceeding 1,500 trillion won in January, it crossed the 1,600 trillion won mark within just one month. The overall return for this year was recorded at 10.26%.

With the domestic stock market experiencing a boom, both the proportion and value of domestic equities surged. As of the end of February, the evaluated value of domestic equities amounted to 395.145 trillion won, accounting for 24.5% of the overall portfolio. This was an increase from 21.4% the previous month, climbing back into the 20% range for the first time in six years, and further expanding again just one month later.

This far exceeds the originally announced target allocation for domestic equities, which was set at 14.9%. However, the NPS still has ample capacity. In January, the NPS Fund Management Committee decided to temporarily suspend strategic asset allocation (SAA) rebalancing, effectively removing the upper limit on the proportion of domestic equities held.

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This increase in the proportion of domestic equities is attributed to the overwhelming returns achieved by domestic stocks. As of February, the return on domestic equities was 49.82%, ranking first among all asset classes. This figure surpassed the 48.17% increase in the KOSPI index. The rise was largely driven by gains in semiconductor-related stocks, fueled by memory demand generated by developments in artificial intelligence (AI) and other factors.

In contrast, the return on overseas equities was only 3.27%, falling short of the 3.75% dollar-based return of the 'MSCI ACWI ex-Korea' index.

Domestic bonds recorded a return of -0.23% as bond valuations declined due to rising interest rates, which were influenced by upward economic risks. Overseas bonds posted a return of 0.91%, as interest rates declined amid economic indicators related to growth and inflation.

The return on alternative investments was calculated at 0.18%. Most of this stemmed from interest and dividend income as well as foreign exchange translation gains and losses due to exchange rate fluctuations; fair value evaluations were not reflected in the figure.

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Meanwhile, by asset class, overseas equities accounted for the largest proportion at 35.6% (573.146 trillion won), although this was a decrease from 37% the previous month.

This was followed by domestic equities (24.5%), domestic bonds (18.5% or 297.656 trillion won), alternative investments (14.6% or 124.389 trillion won), overseas bonds (6.3% or 101.221 trillion won), and short-term funds (0.3% or 5.574 trillion won).

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