The National Pension Service (NPS) Fund, which had an annual rate of return of 11.3 percent last year, has received a “good” rating in the government’s asset management evaluation, the Yonhap News reported on May 26.
This is a step up from the “normal” rating in 2018.
The Ministry of Economy and Finance(MOEF) reported the “2020 Fund Evaluation Results” to the Cabinet meeting on May 26.
The fund evaluation team, formed by the MOEF, positively assessed the NPS fund’s 2019 fiscal year asset management and rated it “good”.
The NPS fund rating fell to “normal” last year for the first time since 2017 when the team began a comparative evaluation with the world’s top five pension funds, including Japan’s Government Pension Investment Fund and U.S.’s California Public Employees’ Retirement System. This year it has risen to “good” again.
“The NPS fund has actively responded to the global stock market boom to achieve good rate of return and have made efforts to diversify investment, including reorganization to expand overseas and alternative investments”, the evaluation team said.
The team added that considering the recent low birth rate, low growth and low interest rates, the NPS should establish financial stabilization measures and asset management goals.
The evaluation team plans to submit the results of the fund evaluation to the National Assembly at the end of this month and will use them to evaluate management of public institutions in 2019 and to establish fund management plans in 2021. (Reporting by Hye-won Chang)