Private School Pension Fund Posts Record High Operating Profit of 2.84 Trillion Won Last Year

13.5% Yield... Second Highest Ever

The Private School Teachers' Pension Service (Sahakyeongeum) recorded the highest-ever operational profit performance last year.

On the 29th, Sahakyeongeum announced, "Last year, the fund's operational return rate was 13.5%, with operational profits of 2.84 trillion KRW." This is the best performance in terms of operational profits since its establishment. The return rate is the second highest ever, following 2009 (14.7%). This achievement is attributed to the reestablishment of a strategic asset allocation plan suited to the financial environment of 2022, characterized by high inflation, high interest rates, and high exchange rates.

The size of the Sahakyeongeum fund increased by 2.32 trillion KRW from the previous year to 26.36 trillion KRW. Last year's returns by asset class (time-weighted returns) were 8.7% for domestic bonds, 8.3% for overseas bonds, 22.9% for domestic stocks, 23.1% for overseas stocks, 7.5% for domestic alternatives, 5.7% for overseas alternatives, and 4.0% for cash equivalents.

Previously, Sahakyeongeum recorded returns in the 11% range for three consecutive years from 2019 to 2021. In 2022, due to the global financial market downturn, it posted a negative return (-7.7%, a loss of 1.87 trillion KRW), but last year it not only recovered all the losses from the previous year but also earned an additional 1 trillion KRW.

Song Hajung, Chairman of Sahakyeongeum, said, "As the organization celebrates its 50th anniversary this year, we will continue to strive to enhance fund operational profits and stabilize pension finances through well-established asset management policies and investment diversification."