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NPS generated KRW 38.8 trillion investment income as of the 1st quarter of 2021

  • Date : 2021-05-28
  • Hit : 452

NPS generated KRW 38.8 trillion investment income as of the 1st quarter of 2021

□ The National Pension Service Investment Management(NPSIM), a fund management organization of the National Pension Service(NPS) led by CEO Young-Jin Kim released on May 28 that at the end of the first quarter of 2021 the National Pension Fund(NPF) has reached a preliminary KRW 872.5 trillion in reserve, an increase of KRW 38.8 trillion from the end of the previous year In the first quarter of 2021, NPF returned a positive 3.94% preliminarily.

○ Since the fund inception in 1988, until this March NPS posted a cumulative investment income of KRW 472.3 trillion.

□ While the coronavirus pandemic long over one year, the global economy gradually has emerged from the fallout and showed signs of recovery. In particular, the vaccines rollout and COVID-19 fiscal stimulus packages around the world led global equities market to boost during the first quarter of 2021.

○ However, by country the pace and degree of the recovery vary and woes over inflation and rising interest rates pressure show still cautious to risky assets.

□ By asset class, both domestic and global equities assets performed considerably well helped by equities market rise, while capital losses caused from interest rates increase contributed the fixed income asset posted a negative return.

○ In equities, higher expectations to economic recoveries from the vaccines rollout and additional fiscal stimulus packages caused both global and domestic equities markets to rise, with positive about 9% returns.

* Domestic Korea Index(KOSPI): up by 6.54%
* Global Market Index(MSCI ACWI ex-Korea, in USD): up by 5.77%

○ However, in fixed income, expectations to economic recoveries and worries over inflation pressure pushed interest rates to rise, with a negative return in domestic fixed income asset, while global fixed income returned about positive 1.6% helped by the translation gain effects to USD.
* Korea Treasury(3yr): up by 15.70bps
* US Treasury(10yr): up by 78.97bps
* Korean Won Exchange Rate to USD: up by 4.18%

○ The quarterly return of alternative investment asset is the preliminary figure based solely on interest and dividend income. As the fair-value measurement to the alternative asset is performed annually as of at the end of year, the final investment rate of return will be disclosed at the end of June next year upon the approval of annual final performance evaluation.

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