The National Pension Service (NPS), South Korea’s public pension fund, said that its fund assets reached 789.9 trillion won ($714.9 billion) at the end of August.

According to its latest fund management report, released this week, the assets of NPS have risen 53.5 trillion won ($48.4 billion) from the end of last year.

Financial assets amounted to 788 trillion won of the total, with 494.3 trillion won, or 62.7%, held in the form of domestic investment. Overseas investment amounted to 294.6 trillion won (37.3%), up from 34.9% at the end of 2019.

Investment in domestic bonds accounted for the largest portion by asset class, with 41.3%, followed by overseas stocks (23.7%), domestic stocks (18.3%) and overseas alternative investments (8.6%).

August 2020End of 2019
Total assets7,899,1301007,366,538100
Financial assets7,888,65099.97,360,79099.9
Domestic stocks1,440,55018.31,322,60918.0
Overseas stocks1,872,28523.71,665,27722.6
Domestic bonds3,260,30441.33,222,35343.8
Overseas bonds398,0645.0307,6004.2
Domestic alternatives241,9963.1247,9713.4
Overseas alternatives675,4508.6594,9818.1
(Unit : 100 million won)

NPS, which is the world’s third-largest pension fund, also said that it achieved a 5.07% return on its total investments from January to August this year, with a profit of 37.3584 trillion won. The rate of return for the whole of last year was 11.31%.

Meanwhile, 335.4 trillion won of total assets, or 42.5%, were being handled by external managers at the end of August, an increase of 34.9 trillion won from the end of 2019.

Assets under mandates for overseas stock investment amounted to 115.4 trillion won, accounting for 61.7 % of total overseas stock investment. The assets under mandates for overseas bond investment amounted to 23.2 trillion won, accounting for 58.7% of total overseas bond investment.

The NPS has invested 67.545 trillion won in overseas alternative assets, with the full amount being managed by external managers. (Reporting by Kyoungho Lee)

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