NPS’s stock target capitulation could come back to bite
The pension fund bowed to retail investor pressure and broadened its investment range into local stocks. Its policy reversal could set the stage for more populist pressure.
On April 9 Korea’s National Pension Service (NPS) bowed to public pressure and widened the permissible investment range of local stocks in its portfolio.
It amounted to an effective U-turn, made due to sustained political pressure from retail investors. And it sets a potentially concerning precedent.
Back on March 26, a spokeswoman said the W855.3 trillion ($763.7 billion) pension fund had not adjusted the tolerance range of its strategic asset allocation (SAA) and tactical asse…
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