Last year, the revenue return of the National Pension Service recorded an all-time high, but as of February this year, it has remained at 1%. This is due to the sharp decline in the revenue return of overseas stock investments that drove last year's strong performance. Conversely, domestic stocks, which performed poorly last year, are holding up well at the beginning of this year.
The National Pension Service Investment Management Headquarters noted on the 29th that as of the end of February 2025, the fund's management revenue return, including domestic and foreign stocks, bonds, and alternative investments, was recorded at 1.02% (provisional, amount-weighted revenue return).
By asset, as of the end of February, domestic stocks recorded a return of 6.49%, while overseas stocks recorded -0.21%. The annual revenue return for domestic stocks in 2024 was -6.94%, and the revenue return for overseas stocks was 34.32%. The mood for these two asset classes has completely reversed since the beginning of the new year.
The Investment Management Headquarters explained regarding domestic stocks, 'Despite domestic and international uncertainties, the management revenue return was favorable due to healthy supply and demand driven by valuation attractiveness.' Regarding overseas stocks, it said, 'Despite uncertainties related to U.S. President Donald Trump's policies, prices rose due to eased inflation concerns and strong performances from major corporations, but the revenue return declined due to the falling exchange rate of the won against the dollar (won-dollar).'
As of February, domestic bonds showed a revenue return of 1.97%, while overseas bonds reported -0.53%. The Investment Management Headquarters said, 'Domestic bonds performed well due to a decrease in long-term rates driven by the interest rate cut in February,' adding, 'Overseas bonds have seen a decline in domestic and foreign bond yields due to uncertainties in U.S. policy and worries about economic slowdown.'
The revenue return for alternative investments recorded -1.25%, while the revenue return for short-term funds was -0.96%. The National Pension Service stated, 'The revenue returns for alternative investment assets are mostly attributed to interest, dividends, and foreign currency translation gains and losses due to won-dollar exchange rate fluctuations.' It added that alternative investments are evaluated for fair value at the end of the year. The annual revenue return is a figure that does not reflect the fair value evaluation amount.
As of the end of February this year, the total fund of the National Pension Service was calculated at 1,227 trillion won. Specifically, this includes 152.983 trillion won in domestic stocks, 434.683 trillion won in overseas stocks, 342.743 trillion won in domestic bonds, 87.897 trillion won in overseas bonds, 205.938 trillion won in alternative investments, and 2.519 trillion won in short-term funds.
When the National Pension was launched in January 1988, the fund's reserves were at the level of 530 billion won. By 2003, it surpassed 100 trillion won, followed by exceeding 200 trillion won in 2007 and 300 trillion won in 2010. Since then, it has been growing annually with reserves of 427 trillion won in 2013, 621 trillion won in 2017, and 1,036 trillion won in 2023.