The National Pension Service of South Korea reported a 0.87% gain in the first quarter of 2025, as stronger returns for domestic equities and bonds largely offset weak foreign equity returns.
Domestic South Korean equities returned 4.97% and domestic bonds 2.03%. Alternative investments returned 1.32%. Foreign bonds returned 1.05% during the quarter, and foreign equities fell 1.56%, the NPS reported Friday.
Assets of the pension fund rose to 1.227 quadrillion won ($888.8 billion), rising by 14 billion won from the prior quarter.
According to an NPS statement, domestic equities were contributors to the fund’s overall returns, while foreign equities lagged due to global market uncertainty.
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“Foreign stocks showed weakness, led by U.S. technology stocks that had been strong last year, amid growing concerns about stagflation, a simultaneous economic downturn and rising prices, amid uncertainty over U.S. tariff policy,” the NPS stated, according to an automatic translation.
The NPS singled out U.S. assets, which generally underperformed other geographies in the first quarter, but it also reiterated its commitment to global diversification.
“This year, global investment conditions, especially in the U.S., are difficult, but the National Pension Service, as a long-term investor managing the nation’s retirement funds, will continue to diversify its investments to achieve both profitability and stability,” said Kim Tae-Hyun, chairman of the NPS, in a translated statement.
The NPS provides South Korean citizens with income security in retirement, akin to Social Security.
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Tags: National Pension Service Investment Management, NPS, South Korea
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