National Pension Headquarters located in Deokjin-gu, Jeonju-si, Jeonbuk. Freelancer Jeongpil Jang
The National Pension Service will hold the Fund Management Committee (Fund Committee) on the 9th to discuss whether to adjust the allowable range of domestic stock investment. Last month, the National Pension Service discussed this through the Fund Management Committee, but postponed it after the election without reaching a controversy over whether it was conscious of the 4·7 re-election.
According to the National Pension Service on the 6th, the National Pension Fund Committee will hold a meeting at 2 pm on the 9th to discuss the review plan for the maintenance rule (rebalancing) of the national pension fund’s target weight of domestic stocks. It is a’one point’ meeting where only one agenda is discussed.
This year’s domestic stock share target of 16.8% remains the same, but it contains the content that the allowable range of strategic asset allocation (SAA) will be increased to ±3~3.5%p (13.3~20.3%) within ±5% of the total churn allowance limit. . Currently, it is ±2%p (14.8~18.8%). In other words, we are discussing whether to increase the target for the share of domestic stocks.
If the SAA allowance is expanded, the national pension’s discretionary range of domestic stock holdings will increase. As the domestic stock index rises, the weight naturally increases, and for this reason, the National Pension System has been selling mechanically to meet the weight target. It is for this reason that criticism has emerged that the selling tax of the national pension is acting as a negative factor in the domestic stock market.
For this reason, expanding the allowable range of SAA is expected to lead to fewer shares that must be sold to meet the holding target. However, since the target weight itself at the end of this year remains unchanged, there is no effect of additional investments from the national pension in domestic stocks.
Pension funds such as the national pension are net selling domestic stocks except for two days since December 24 last year. This year’s cumulative net sales amounted to 16 trillion won.
Reporter Oh Won-seok [email protected]
