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Photo = Yonhap news |
[Alpha Biz= Kim Sangjin] As of the end of October 2024, the National Pension Service (NPS) Fund Management Division reported a tentative return rate of over 11%, driven by strong overseas stock performance, though domestic stocks experienced a decline.
According to NPS’s recent disclosure, from January to October 2024, the return on domestic stocks stood at 11.34%, with operating income amounting to 120.3 trillion Korean won. Since 1988, the fund's accumulated total reached 1,171 trillion won, with 698 trillion won attributed to operating income.
The returns by asset type are as follows:
- Domestic stocks: -0.87%
- Overseas stocks: 26.52%
- Domestic bonds: 3.96%
- Overseas bonds: 10.32%
- Alternative investments: 8.90%
Compared to the end of September, the return on overseas stocks increased from 21.35% to 26.52%, while domestic stocks turned negative, dropping from 0.46% to -0.87%. This is a significant decrease compared to last year's 22.12% return on domestic stocks.
The positive overseas stock performance was largely driven by the U.S. Federal Reserve's interest rate cuts and a sustained rally in technology stocks. Additionally, the rise in the won-dollar exchange rate boosted returns on overseas assets. However, domestic stocks faced a downturn, primarily due to concerns about the performance of major technology companies.
Overseas bonds also benefited from the higher won-dollar exchange rate, contributing to strong returns, while domestic bonds performed well as interest rates remained low following the Bank of Korea's rate cuts in October.
The return on alternative assets was primarily driven by interest and dividend income, as well as exchange rate gains from the won-dollar exchange rate rise, though the fair value of these assets has not been reflected in the reported figures.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
