Q1 Operating Profit of 1.1 Trillion KRW, 4.7% Yield
Overseas Stocks (12.5%) and Domestic Stocks (6.0%) Both Drive Growth
Considering Expansion of Private Loan Investments This Year
The operational returns of the Private School Teachers' Pension Service (Sahak Yeongeum) have surpassed 1 trillion won this year. According to Sahak Yeongeum on the 9th, as of the end of March 2024, the operational return rate was 4.7%, and the operational returns amounted to 1.1 trillion won.
Last year, Sahak Yeongeum's annual operational return rate was 13.5%, with operational returns of 2.84 trillion won. Considering this, relatively favorable results have continued into the first quarter of this year. The scale of financial asset management increased by 1.1 trillion won from 23.9 trillion won at the end of the previous year to 25 trillion won.
The first quarter asset class-specific returns (time-weighted returns) were 12.5% for overseas stocks, 6.0% for domestic stocks, 4.3% for overseas bonds, 3.9% for overseas alternatives, 2.7% for domestic alternatives, and 0.1% for domestic bonds. Domestic and international stocks recorded favorable returns, supported by the solid rise of the KOSPI and global stock markets. Domestic bonds had limited return growth due to the decline in valuation caused by rising bond yields. Overseas bonds performed relatively well due to the increase in the KRW-USD exchange rate. Alternative investment returns do not reflect fair value appraisal amounts.
Meanwhile, Sahak Yeongeum has set the investment keyword for this year as ‘interest rate products’ and plans to fully utilize the ongoing high-interest financial market environment by expanding private loan investments instead of the previously conducted buyout and equity investments, among other strategies, to pursue various investment plans.
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