Home bias takes a toll on performance for Korea’s NPS

Given the downturn in the Korean economy, Korea’s National Pension Service (NPS) is seeing its performance suffer — after having more than half of its total portfolio invested in domestic assets. NPS had an overall negative return of 8% during the first half of 2022. The Korean pension fund’s assets under management (AUM) dropped to W882.7 trillion ($654.2 billion) as of end-June. By asset class, domestic equity showed the worst internal rate of return (IRR) in the first half, a…