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Investment Principles

A set of principles for managing the Fund are outlined in the Pension Management Guideline to ensure that the Fund is managed and administered properly and efficiently according to the pre-defined purposes. In a diligent compliance with such Guideline, the NPSIM and manages the Fund, especially, under the six principles of fund management - Profitability, Stability, Public Benefit, Liquidity, Sustainability and Independence.

Investment Principles

  • Profitability

    To maximize returns within the assurance of the long-term stability of the Fund for the purpose of minimizing financial pressure on insured persons, especially the next generation.

  • Stability

    To manage the Fund within the risk tolerance levels while taking the volatility of gains and losses in invested assets into consideration.

  • Public Benefit

    To manage the Fund in consideration of the possible impact on national economy and financial markets due to its large size and the coverage for an almost whole nation.

  • Liquidity

    To secure liquidity for consistent payment of benefits and, particularly, identify the way in advance to keep the possible impact on financial markets to minimum in disposal of our assets.

  • Sustain-
    ability

    To fulfill the fiduciary duty of managing the Fund in consideration of environmental, social and governance factors, among others, to improve investment sustainability.

  • Indepen-
    dence

    To comply with the aforementioned principles which should not be compromised for other purposes.