The National Pension Service (NPS) posted a preliminary positive 0.37% return on investment in May 2020 with the help of overseas fixed income despite the impact of Covid-19. It improved by 2.94 percentage points compared to a negative 2.57% return on investment in April.

It was a return to positive territory for the first time since February. Domestic and global stocks returned minus 6.18% and minus 2.63% respectively after the stock market tumbled and the economy weakened on fears over Covid-19, the NPS said on July 30. In April domestic and global stocks returned minus 10.21% and minus 9.43% respectively. 

Domestic and global fixed income returned positive 10.59% and 2.27% respectively, showing positive results as gain on valuation increased while global interest rates fell as governments around the world released stimulus packages. Return on domestic and global fixed income was in positive territory in April at 1.25% and 8.80% respectively.

Alternatives returned 5.96%, slightly up from April’s 4.78%. The return was mostly due to interest, dividend incomes, and foreign exchange gains. The results are subject to change, depending on the value assessment of alternative assets and exchange rates. (Reporting by Hyewon Chang)