Korea's NPS Sees 8% Investment Loss in First Half of 2022

By Nick Hedley

South Korea’s National Pension Service (NPS) recorded a negative 8% return on its investments in the first half of 2022 amid a sharp downturn in its equity portfolios.

The fund’s assets under management shrunk to 882.7 trillion won (US$650 billion) at the end of June as its domestic equities portfolio lost 19.6% and its global equities portfolio shed 12.6%, it said in an update.

Alternatives, however, partly offset those losses, delivering a positive return of 7.3% in the first six months of the year. Alternatives account for 15.4% of the fund’s portfolio, with fixed income holding a 42.9% share and equities 41.7%.

Chief Investment Officer Hyo-Joon Ahn said in a recent statement: “In the face of growing uncertainties surrounding domestic and global economy conditions, the NPS will spare no effort to deliver solid long-term returns by building a well-diversified portfolio and pursuing the best investment opportunities worldwide.”

The National Pension Service’s investment management unit was launched in 1999.