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Domestic Fixed Income
The NPS seeks to maximize sustained long-term returns by holding bonds until their maturity and diversifying investments by type, issuer, industry (for corporate bonds) and maturity. In this process, the NPS pursues excess returns by adjusting duration within a certain range in consideration of several factors including credit ratings of issuers and spread over risk-free bonds.
Overview
(in trillion won, as of the end of Q1 in 2022)
Asset Value Of the Domestic Fixed-income 325.5, Weight in the Total Fund 35.1%, In-house Management Portion of the Domestic Fixed-income 86.0%
| year | In-house | Total |
|---|---|---|
| 2017 | 254.6 | 289.4 |
| 2018 | 273.1 | 311.0 |
| 2019 | 279.3 | 320.8 |
| 2020 | 281.8 | 326.1 |
| 2021 | 292.9 | 340.0 |
| 2022.1Q | 280.1 | 325.5 |
Note:
1. Until a fund management assessment is completed, preliminary estimates are provided.
2. The figures above might not add up due to rounding.
1. Until a fund management assessment is completed, preliminary estimates are provided.
2. The figures above might not add up due to rounding.
Sector Composition
(as of the end of Q1 in 2022)
- Korea Treasury Bonds 42.9%
- Special purpose bonds 19.5%
- Corporate bonds 11.2%
- Municipal, Monetary stabilization, Financial bonds 12.6%
- Bank bonds 9.3%
- ABS, etc 4.5%
Note: The figures above provide a breakdown per issuer type as of the end of each quarter.
Top 10 Holdings
(in 100 million won, as of the end of 2020)| No. | Issuer | Amount | Weight |
|---|---|---|---|
| 1 | Korea Treasury Bonds | 1,379,118 | 44.29% |
| 2 | Korea Housing Finance Corporation | 301,090 | 9.67% |
| 3 | Bank of Korea | 147,270 | 4.73% |
| 4 | Korea Lands and Housing Corporation | 71,254 | 2.29% |
| 5 | Korea Electric Power Corporation | 65,569 | 2.11% |
| 6 | National Agricultural Cooperative Federation | 39,051 | 1.25% |
| 7 | Korea Development Bank | 36,455 | 1.17% |
| 8 | Nonghyup Bank | 32,027 | 1.03% |
| 9 | Korea Expressway Corporation | 23,307 | 0.75% |
| 10 | Korea National Railway | 23,239 | 0.75% |
Note: Data on assets by sector, industry, issuer or type as of the end of the fiscal year is disclosed in the third quarter of the following year according to Article 25 of the Guideline for National Pension Fund Management and Article 39 of the Regulation on National Pension Fund Management.