National Pension Service, domestic-stock limit 5.9percentage points higher, announcement
The National Pension Service 5.9raised the limit for domestic-stock investments by percentage points and decided to gradually reduce the share of domestic bonds. The share of its internal portfolio allocated to the “domestic market” 14.9from 20.8to
The National Pension Service 5.9announced that it would raise the limit for domestic-stock investments by percentage points. At the same time, it decided to gradually reduce the share of domestic bonds. The National Pension Service said the measure was due to a change in the fund’s asset allocation.
The National Pension Service announced that it would increase the share of “domestic market,” one of the accounts in its portfolio, 14.9from 20.8to . The National Pension Service explained that one of the aims of the increase was to include a mechanism to prevent mechanical selling. It added that the specific implementation procedures and timing would be determined through internal processes.
Following the announcement, some individual investors said concerns about large-scale selling by the National Pension Service had eased. Some investors said the immediate selling pressure had fallen. Meanwhile, the labor union said it would not take responsibility for investment losses.
The Korea Investment Corporation has begun the open recruitment process for its chief investment officer (CIO). The corporation said it plans to announce the eligibility requirements and selection schedule through its official channels. Further information about the selection of applicants will be provided in a future notice.
The National Pension Service explained that the change to its asset allocation reflects consideration of both the market impact and the stability of fund management. It said the change would be implemented in stages in accordance with its internal rules. Related announcements will be shared in subsequent notices.
The relevant institutions and companies plan to disclose their response measures regarding the announcement or communicate them through board decisions. Investors and market participants will be able to assess the impact through the disclosed implementation schedule and detailed measures. The National Pension Service said it would implement the measures after completing internal reviews and procedures.