National Pension Service raises its domestic stock target allocation 14.9from % to 20.8%
The National Pension Service Fund Management Committee 28raised this year’s domestic stock target allocation from 14.9% to 20.8%. A temporary expansion of the strategic asset allocation (SAA) tolerance range has eased concerns about short-term selling pressure, but the gap with the market’s estimated allocation means rebalancing pressure has not been fully resolved.
The National Pension Service Fund Management Committee 28raised this year’s domestic stock target allocation from 14.9% to 20.8%. The decision represents a policy change toward increasing the domestic stock allocation. Related details will be reflected in the fund’s management framework.
The committee also temporarily expanded the strategic asset allocation (SAA) for domestic stocks. The temporary expansion is a measure intended to ease short-term supply-and-demand pressure. This has led to assessments that the likelihood of immediate large-scale selling has declined.
However, a gap remains between the market’s estimated domestic stock allocation and the fund’s target allocation. Because of this gap, the possibility of selling demand arising as holdings are adjusted has not disappeared entirely. The industry views this as a risk.
The KOSPI index 8,000if the upward trend continues, including a break above the line, the burden of adjusting overweight positions could grow, according to an analysis. If the index rises, selling pressure could emerge, particularly in stocks held above target weights. The fund’s timing and pace of adjustments will affect supply and demand.
Overall, the decision was announced as a measure intended to reduce the risk of large-scale selling. However, differences between target weights and actual holdings remain, leaving room for further adjustments. Supply-and-demand volatility is expected to continue in the second half of the year.
Financial investment industry participants say the fund’s further measures and disclosures should be monitored. In practice, it is important to check trading-volume changes in stocks with large overweight positions. If the fund announces further plans, they could have an immediate impact on market supply and demand.
Sources: 파이낸셜뉴스 증권
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