\ National Pension Service Investment Management

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NPF at a Glance

The National Pension Fund (NPF) is managed by the National Pension Service (NPS) on behalf of the Minister of Health and Welfare in accordance with investment policies and asset allocation plans approved by the National Pension Fund Management Committee, the highest decision-making body, with an aim of maximizing returns and ensuring the long-term financial stability of pension funds.

FUND STATUS

FUND STATUS

As the world's third-largest pension fund by total assets, the NPF amounted to KRW 984.2 trillion, which is calculated by subtracting pension benefits and general & administrative expenses of KRW 329.4 trillion from contributions and investment income of KRW 1313.5 trillion.

  • Revenues : 1313.5 - Contributions 781.9, Investment Income 531.7
  • Expenses : 329.4 - Pension Benefits 317.8, G&A Expenses, etc. 11.7
  • Reserve Fund : 984.2 - Financials 983.1, Welfare & Others 1.0
FUND GROWTH

FUND GROWTH

Since its inception in 1988, the NPF has grown significantly to reach KRW 984.2 trillion at the end of September, 2023 and is projected to surpass KRW 1,755 trillion by 2040.

As of end-Sep 2023/ in trillion won

  • 1988
  • 2003 : 100 KRW tn
  • 2007 : 200 KRW tn
  • 2010 : 300 KRW tn
  • 2013 : 400 KRW tn
  • 2015 : 500 KRW tn
  • 2017 : 600 KRW tn
  • 2019 : 700 KRW tn
  • 2020 : 800 KRW tn
  • 2021 : 900 KRW tn
  • 1988 : 0.5 KRW tn
  • 1999 : 47.2 KRW tn
  • 2003 : 116.7 KRW tn
  • 2007 : 219.5 KRW tn
  • 2011 : 348.9 KRW tn
  • 2015 : 512.3 KRW tn
  • 2023.9. : 984.2 KRW tn
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INVESTMENT PERFORMANCE

INVESTMENT PERFORMANCE

Amid growing economic and financial uncertainties and challenges at home and abroad, the NPS has constantly exerted utmost efforts to deliver sustainable value over the long term in a bid to ensure the financial stability of pension funds.

As of end-Sep 2023

  • 1988-2023 Cumulative Investment Return : 531.7 KRW tn
  • 1988~2022 Annualized Average Rate of Return : 5.11%
  • 2018 : -5.9 KRW tn
  • 2019 : 73.4 KRW tn
  • 2020 : 72.1 KRW tn
  • 2021 : 91.2 KRW tn
  • 2022 : -79.6 KRW tn
  • 2023.9 : 80.4 KRW tn
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INVESTMENT PORTFOLIO

INVESTMENT PORTFOLIO (As of end-Sep 2023/in trillion won)

  • Total 984.2 / 100.0%
  • Financials 983.1 / 99.9%
    • Domestic Equity 137.4 KRW tn / 14.0%
    • Domestic Fixed Income 314.1 KRW tn / 31.9%
    • Global Equity 295.1 KRW tn / 30.0%
    • Global Fixed Income 72.2 KRW tn / 7.3%
    • Alternative 163.0 KRW tn / 16.6%
    • Short-term Assets 1.7 KRW tn / 0.2%
  • Welfare & Others 1.0 KRW tn / 0.1%
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GLOBAL INVESTMENT

GLOBAL INVESTMENT(Financials)

Given the rapid increase in fund size, the NPS places great emphasis on increasing exposure to overseas investments and diversifying the portfolio by geography to generate stable returns over the long run.

As of end-Sep 2023/in trillion won

  • Domestic Investment 48.4%(476.1KRW tn)
  • Global Investment 51.6%(507.3 KRW tn)
    • Equity : 58.2%(295.1 KRW tn)
    • Fixed Income : 14.2%(72.2 KRW tn)
    • Alternatives : 27.4%(139.1 KRW tn)

EXTERNAL MANAGEMENT(Financials)

The NPS partners with external managers to harness their extensive expertise and capabilities with a view to maximizing returns and better managing risks.

As of end-Sep 2023/in trillion won

  • INTERNAL MANAGEMENT 51.3%(504.3 KRW tn)
  • EXTERNAL MANAGEMENT 48.7%(479.1 KRW tn)
    • Equity : 49.8%(238.8 KRW tn)
    • Fixed Income : 17.1%(82.1 KRW tn)
    • Alternatives : 33.0%(158.3 KRW tn)
Asset Allocation Plan Each year, the National Pension Fund Management Committee sets mid-term asset allocation targets with a time horizon of five years, and develops an annual fund management plan that reflects the market outlook and the financial status of pension funds to facilitate the attainment of the mid-term targets.
Annual Fund Management Plan
Mid-term Asset Allocation Plan