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.
