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National pension fund to boost stock investment next year
Date
2011.06.29
제목 없음 South Korea's national pension fund will further increase its investment in local and foreign stock markets next year, a government ministry said Wednesday.

   The National Pension Service (NPS) is already one of the largest investors in the local stock market with over 77 trillion won (US$71.3 billion) expected to be freshly added to the program in 2012, according to the Ministry for Health, Welfare and Family Affairs.

   Out of the total, some 12 trillion won will be used to pay pension allowances with the remaining 65 trillion won left for investment, the ministry said.

   The NPS will inject a total of 14 trillion won into domestic and overseas stocks next year, raising the portion of equity investment to 27.4 percent, up 2.8 percentage points from this year, the ministry said.

   Out of its entire pool of investment fund, 19.3 percent will be invested in the local stock market, up from the current 18 percent, with the proportion of its investment in overseas stock markets also increasing from 6.6 percent to 8.1 percent.

   As a result, the pension service's investment in domestic bonds will be reduced to 59.3 percent of its total fund from the current 63.5 percent. The proportion of its investment in foreign bonds will remain intact at 4.1 percent, according to the ministry.

   Once its investment plans are realized, the pension service will have invested 108.7 trillion won in the local and foreign stock markets, with over 251 trillion won invested in bonds, the ministry said.

Source: Yonhap News (June 29, 2011)

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