Overseas stock rate of return 19.22%, domestic stock rate of return 3.78%
“Overseas stocks rise due to rally in large technology stocks… “Domestic stocks give back their gains.”
The National Pension Fund’s provisional rate of return as of August this year was calculated to be close to 9%. The overseas stock management rate of return reached 20%, but domestic stocks fell by half compared to the previous month.
According to the National Pension Fund Management Committee on the 31st, the overall return on the National Pension Fund fund has been 8.76% since the beginning of the year. The annualized rate of return for the year was 9.08%.
The operating profit during this period was 92.6 trillion won, and the cumulative profit was 670.6 trillion won. The total fund management reserve is 1,140.62 trillion won.
By assets, △domestic stocks 3.78% △foreign stocks 19.22% △domestic bonds 3.21% △overseas bonds 6.89% △alternative investments 5.49%. Although overseas stock returns were good, domestic stock returns fell by less than half from 7.62% by the end of July.
The National Pension Service said, “Overseas stocks have risen due to the good performance of major companies and a rally centered on large technology stocks, and the operating rate of return is good due to the rise in the won-dollar exchange rate.” “As concerns about an economic recession have emerged in the second half of the year, domestic stocks have accounted for a portion of the increase in the first half of the year.” “I returned it,” he explained.
The KOSPI increase rate is 0.72% compared to the beginning of the year, but the global stock market increase rate is 15.57% compared to the beginning of the year.
Regarding domestic and overseas bonds, he said, “Bond interest rates have fluctuated depending on the outlook for when the U.S. benchmark interest rate will be lowered,” and “Bond yields are good, reversing the increase in interest rates at the beginning of the year due to a slowdown in domestic and foreign economic indicators since the first half of the year.”
(Seoul = News 1)
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Overseas vs. Domestic Stock Market Performance: Analyzing Recent Trends
Recent data indicates a marked divergence in the performance of overseas and domestic stock markets, as highlighted by the National Pension Fund’s provisional returns. According to the latest report, overseas stocks have achieved a remarkable return of 19.22%, while domestic stocks lag significantly with only 3.78%.
Key Insights:
- Performance Breakdown:
– Overseas Stocks: The robust performance of major technology firms has significantly contributed to the positive returns. The rise in these stocks is complemented by favorable currency exchange rates that enhance overall returns for foreign investments.
– Domestic Stocks: In contrast, domestic equities experienced a substantial decline, falling from a previous return of 7.62% at the end of July to 3.78% as of now. This drop has been attributed to growing fears surrounding potential economic recession and a retraction of gains made earlier in the year.
- Overall Fund Returns:
– The National Pension Fund reports an overall return of 8.76% for the year, with an annualized return of around 9.08%. The total accumulated fund management reserve now stands at approximately 1,140.62 trillion won.
- Profitability and Market Conditions:
– The fund’s operating profit during this period was noted at 92.6 trillion won, underscoring the strong performance of overseas investments amidst fluctuation in bond interest rates and economic indicators.
- Comparison with Global Markets:
– While the KOSPI index (Korea Composite Stock Price Index) reflects a modest increase of 0.72% for the year, global stock markets present a more favorable increase of 15.57% during the same period.
- Impact of Economic Indicators:
- The report highlights that bond yields were positively affected by the slow down in both domestic and foreign economic indicators, leading to a reversal of interest rate increases earlier this year.
Conclusion
The stark contrast between the returns of overseas and domestic stocks indicates a shifting landscape influenced by both global market performance and local economic conditions. As concerns regarding the potential for economic downturns persist, investors will need to closely monitor these trends and potentially recalibrate their strategies to adapt to the evolving market dynamics.