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Pension funds

Korea Post's savings arm earns 8.45% return in H1

Equities and alternative assets lift the average investment return

By Oct 12, 2021 (Gmt+09:00)

Korea Post's savings arm earns 8.45% return in H1
Korea Post's savings arm earned an 8.45% return on investments in the first half of this year, broadly in line with the average rate of return reported by other major South Korean pension funds during the same period. 

Double-digit returns from equities and alternative assets offset flat to negative gains from fixed-income investments, according to Korea Post's announcement on Oct. 8.

Compared with benchmarks, however, both domestic and overseas equities missed their benchmarks in the January-June period, while alternative and fixed-income assets outperformed.

The proportions of overseas equities and alternatives rose to their highest level in five years for the savings arm as of end-June.

Asset type H1 return H1 benchmark
Domestic equities 14% 15.05%
Overseas equities 17.03% 17.58%
Alternatives 15.62% 5.7%
Domestic fixed income 0.34% -0.35%
Overseas fixed income -2.23% -3.27%

In the entire year of 2020, Korea Post's savings unit logged an average 4.29% return. It manages 83.7 trillion won ($70 billion) in assets as of end-June.

Last month, it netted slightly over 1 trillion won from the block sale of shares in the country's largest internet-only lender KakaoBank. The state-run body achieved about a tenfold return from the pre-IPO investment in six years.

Write to Jae-fu Kim at hu@hankyung.com

Yeonhee Kim edited this article.

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