National Pension Fund posts 21.7% return on domestic stocks in Q1, total assets exceed 1,500 trillion won

South Korea's National Pension Fund (NPS) announced a robust first-quarter performance, with its total reserves surpassing 1,500 trillion won (approximately $1.1 trillion USD). The fund's overall operating return for the first three months of the year stood at a provisional 4.42%, marking a significant increase of 68 trillion won from the end of the previous year.

The standout performer was the domestic stock portfolio, which delivered an impressive return of 21.67%. This significantly outperformed the broader domestic stock market's return of 19.89% over the same period. The fund's management attributed this success to strategic investments and favorable market conditions within the domestic equity sector.

In contrast, the overseas stock market presented challenges, resulting in a -0.11% return. The NPS cited heightened market uncertainty as the primary reason for this dip. The domestic bond portfolio also faced headwinds, recording a negative return of -2.03%. This decline was influenced by rising market interest rates, which led to a decrease in bond valuation.

Despite the mixed performance across asset classes, the overseas bond portfolio showed a positive return of +4.98%. This was partly driven by a favorable foreign exchange rate, even as U.S. Treasury yields saw a modest increase. The fund's chairman, Kim Seong-ju, noted that while the overall return saw a dip from its February peak due to Middle Eastern tensions, the fund has since recovered and is demonstrating a healthy performance.