South Korean major pension funds’ investment returns have swung to positive, rebounding from sluggish returns in the first half due to Covid-19, e-daily reported on August 25, citing industry sources.
According to the report, the investment returns of the National Pension Service (NPS), Government Employees Pension System (GEPS), Teachers’ Pension (TP), Military Mutual Aid Association (MMAA), Scientists and Engineers Mutual-Aid Association (SEMA) have turned positive.
GEPS logged a 0.5% return as of the end of June, the first positive figure since the pandemic. TP’s return recorded 2.49% as of the end of June. NPS, the world’s third largest pension fund, posted a 0.37% return as of the end of May. MMAA and SEMA also saw their returns turn positive.
Steady returns from bonds and alternative investments were behind the results, local media said. Returns from global fixed income was bolstered by a series of benchmark rate cuts and quantitative easing steps by central banks. Also, dividend income and conversion profit from the rise in the dollar/won exchange rate in the second quarter have made the returns on alternative assets shine. (Reporting by Kyoungho Lee)