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Press Release

NPS Sets to Recover from Q1 Loss Due to Covid-19

  • Date : 2020-05-29
  • Hit : 3868

NPS Sets to Recover from Q1 Loss Due to Covid-19
- Stable performance compared to other foreign pension funds even after nearly 20% drop in domestic and global stock markets -

□ The National Pension Service Investment Management (NPSIM), a fund management organization of the National Pension Service (NPS) led by acting CEO and Executive Director for Planning Jung-Bae Park, announced on May 29, 2020 that the National Pension Fund (NPF) has reachd a preliminary of KRW 698.3 trillion in the Reserve Fund, with a rate of investment return of –6.08% as of March 31, 2020.

○ The NPF saw an investment return falling into negative territory, as its domestic and global stock investments made a huge loss in the wake of the Covid-19 pandemic.

□ With the worldwide spread of the Covid-19, the global financial markets as well as the local market have faced unprecedented challenges.

○ A global stock market crash has dealt a heavy blow to other foreign pension funds that experienced a significant loss in investment return. Among leading pension funds that disclosed the investment results for the first quarter, the NPF performed relatively well.

< Comparison of Pension Funds Investment Return >

Type

NPF (Korea)

GPFG (Norway)

ABP (Netherland)

Q1 2020

-6.0%

-14.6%

-9.8%

Source: The website of each pension fund containing the latest available data of investment returns

□ Having said that, as the stock markets as of now in May has recovered majority of the losses made during the first quarter, the NPF is seeing its total rate of return increasing again with recovery in equities and fixed income investments.


< Local and Global Stock Markets Volatility Before and After Q1 >

Type

End-2019

March 31, 2020

(YoY)

May 27, 2020

(against Q1)

KOSPI

2,197.67

1,754.64

(-20.2%)

2,031.20

(15.8%)

MSCI ACWI (ex-Korea, USD)

2,806.65

2,221.71

(-20.8%)

2,514.27

(13.2%)


□ As a long-term investor, the NPF will continue to fulfill its duty of managing pension funds and reinforcing fiscal stability, while preparing itself to adjust to the new post-coronavirus world.

<Appendix> Overview of National Pension Fund as of the first quarter of 2020

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