National Pension Fund Surpasses 1,100 Trillion Won in Reserves... Earned 61 Trillion in Q1

Fund Operation Yield 5.82%
Reserve Fund Records 1,101 Trillion Won
Cumulative Operating Profit 639 Trillion Won

Last year, the National Pension Fund surpassed 1,000 trillion won in fund reserves for the first time in history, and it continued to show favorable performance early this year.

The National Pension Service Fund Management Headquarters announced on the 30th that, as of the end of the first quarter of 2024 (January to March), it recorded a return rate of 5.82% and earnings of 61 trillion won, bringing the total fund reserves to 1,101 trillion won on a provisional basis.

Since the beginning of the year, the strong performance of U.S. technology stocks led to favorable returns on domestic and overseas equities, but concerns over delays in the timing of interest rate cuts caused bond yields to rise, partially limiting the overall increase in returns.

The provisional returns by asset class (based on amount-weighted returns) were 13.45% for overseas equities, 5.53% for domestic equities, 4.48% for overseas bonds, -0.01% for domestic bonds, and 4.11% for alternative investments.

Domestic and overseas equities rose mainly due to large technology stocks amid concerns over U.S. inflation, driven by expectations for artificial intelligence (AI) demand. Overseas equities showed double-digit returns, boosted further by the weakening of the Korean won.

Domestic and overseas bonds saw yields rise due to concerns that the U.S. monetary tightening stance might continue, but overseas bonds posted favorable returns thanks to the increase in the won-dollar exchange rate.

The annual return for alternative investment assets does not reflect fair value assessments and is evaluated once a year at the end of the year.

Returns on alternative investment assets mostly reflected interest income, dividend income, and foreign exchange gains from the rise in the won-dollar exchange rate.

Kim Tae-hyun, Chairman of the National Pension Service, said, “Following last year, we are continuing to achieve favorable results this year as well,” adding, “As a long-term investor managing the precious retirement funds of the people, we will do our best to generate stable returns even in a highly volatile market environment.”