The NPS Investment Management, a dedicated fund management arm of the NPS (Chairman & Chief Executive Officer Kim Tae-hyun), announced today that the National Pension Fund ended Dec. 31, 2024 with a preliminary return of 15.00% on a money-weighted return basis, equivalent to KRW 160 trillion, raising its total assets under management to KRW 1,213 trillion.

  This marked its highest-ever return since the inception of the Fund in 1988, which pushed up its cumulative investment income to KRW 738 trillion, with an annualized average return of 6.82% since inception.

  By asset class, the top performing asset class was global equity with a return of 34.32%, followed by global fixed income at 17.14%, alternatives at 17.09%, domestic fixed income at 5.27% and domestic equity at -6.94%.

  Global equity delivered a return of more than 30%, propelled by the U.S. Federal Reserve’s interest rate cut and a tech-driven rally, while domestic equity posted a negative return due to concerns over earnings of large tech companies and political uncertainty.

* Domestic Stock Market (KOSPI): down 9.63% year-over-year, USD/KRW exchange rate: up 14.01% year-over-year
Global Stock Market (MSCI ACWI ex-Korea, in USD terms): up 18.43% year-over-year

  Global fixed income generated a double-digit return, backed by robust interest income and a rise in the USD/KRW exchange rate, despite an increase in a market interest rate. Domestic fixed income recorded a return of over 5% thanks to increased bond prices led by two base rate cuts by the Monetary Policy Board of the Bank of Korea in October and November.

* Korean Treasury (3-year): down 54.9bp year-over-year
U.S. Treasury (10-year): up 67.9bp year-over-year

  For alternative assets, capital appreciation and realized gains were reflected.

  “Amid the challenging investment landscape in 2024, affected by concerns over economic slowdown, ongoing geopolitical risk, the U.S. presidential election, and the political turmoil in Korea, the NPS achieved a record-breaking performance for two years in a row. The result is mainly attributable to our sustained efforts to diversify investment portfolio, source promising investment opportunities through strategic partnerships with global asset managers, and improve the investment environment by strengthening the functions of overseas offices,” said Kim Tae-hyun, Chairman & CEO of NPS.

  “Going forward, we will continue to closely manage risks and bolster our investment capability and expertise by implementing the Reference Portfolio and the Next Generation Global Investment Integration System, as well as by attracting local talents, in a bid to deliver solid returns in the years to come.”

  The result of the performance assessment on fund management for the year 2024 will be finalized by the National Pension Fund Management Committee around at the end of June, following reviews by the Special Committee on Risk Management and Performance Evaluation & Compensation.