Pension Fund Investments Designed to Prevent Risks

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Pension Fund Investments Designed to Prevent Risks

The government plans to avoid direct investment of pension funds into stock and bond markets in order to guarantee principal. The investment pool of pension funds is schedule to begin at next month at the earliest.

The government plans to invest 3 trillion won ($2.3 billion) of surplus money in 43 small pension funds, the Ministry of Finance and Economy said. "The investment will be made through a special investment fund to maximize profitability and minimize risks," a ministry official said."

The investment fund will seek appropriate combination of investments in stock and bonds in its portfolio to cover possible losses of stock investment with bond interests in order to guarantee principals.

The government is currently reviewing a detailed management plan for the pension investment fund with the Korea Investment Trust Companies Association.



by Song Sang-hoon

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