Will the National Pension Plan change the allowable range of domestic stock investment? Re-discussion on the 9th

The fund management committee held in March
The fund management committee held in March

[연합뉴스 자료사진]

(Seoul = Yonhap News) Reporter Kim Ye-na = The National Pension Service held the Fund Management Committee (Fund Committee) on the 9th to discuss whether to adjust the allowable range of domestic stock investment.

According to the Ministry of Health and Welfare and the National Pension Service on the 6th, the Fund Committee, the best decision-making body for the National Pension, discusses a review plan for the National Pension Fund’s domestic share target ratio maintenance rule (rebalancing) at a meeting on the afternoon of the 9th.

Only the rebalancing agenda will be discussed at this meeting.

There are opinions that the schedule itself is unusual considering the fact that the first and third fund committees of this year were held at the end of each month, but this meeting takes the character of a one-point meeting dealing with issues that the fund committee could not conclude on the 26th of last month.

At the meeting at the time, it was discussed how to adjust the allowable range of strategic asset allocation within ±5%, the range allowed to deviate from this target, while keeping the target of 16.8% of domestic stocks held by the National Pension Service this year.

Deviations from the range can be achieved through strategic asset allocation (SAA) and tactical asset allocation (TAA), but the Ministry of Health and Welfare and the National Pension Service proposed a proposal to increase the SAA’s allowable range from ±2% points to ±3% points and to ±3.5% points. did.

A higher SAA ceiling could have the effect of reducing the number of shares that must be sold immediately to achieve the holding target.

However, since the target weighting at the end of this year remains unchanged at ‘16.8%±5%’, it does not have the effect of expanding the investment of the national pension in domestic stocks.

Regarding some points that it is very rare for the fund committee to discuss only a single agenda, an official from the Ministry of Health and Welfare explained that “although it is rare, there was a previous discussion of an agenda that was not agreed on by the fund committee.”

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