National pension fund's 2009 returns set to hit 10-year high

SEOUL, Jan. 8 (Yonhap) -- The national pension fund is set to post its highest investment returns in 10 years in 2009 thanks to bullish stock markets, a report by the fund showed Friday.

The National Pension Service (NPS) chalked up 9.92 percent in profits as of the
end of November from its investment in stocks, bonds and other properties made
during the first 11 months of last year.
A month earlier the rate shot up to 10.11 percent, the highest earnings ever for
October on record, according to the report.
After combining figures for December, the fund is expected to post profits of
around 10 percent, the highest level since the 12.8 percent reported in 1999, the
report showed.
"The fund's stock holdings which were bought at discounted prices last year rose
sharply on the back of the stock market rebound and contributed to the 10-year
high investment returns," an official in charge of managing the fund said.
In 2008, NPS' rate of returns plunged to negative terrain with minus 0.18
percent, bucking multi-year rates of around 7 percent in the previous years.
During the January-November period, the 9.92 percent returns yielded 14 trillion
won (US$12.4 billion) in cash with its total money under management reaching 274
trillion won, the report showed.
This is slightly less than the 292 trillion won state budget for 2010.
Of total gains, earnings made from stock investments jumped 35.16 percent, with
bonds contributing 4.89 percent. Alternative investments including properties and
bets on short-term loans generated earnings of 3.56 percent and 1.53 percent,
respectively.
yonngong@yna.co.kr
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