National Pension Service Adjusts Investment Strategy

The National Pension Service (NPS) has made significant adjustments to its investment portfolio, focusing on increasing stakes in financial and holding companies while reducing investments in secondary battery firms. This strategic shift reflects the NPS's response to current market trends and legislative changes.

Detailed Changes in Shareholdings

From July 1-3, the NPS disclosed changes in its shareholdings across 154 companies. Notably, the service increased its investments in financial stocks such as Korea Investment Holdings and iM Financial Group, signaling a bullish outlook on the financial sector.

Impact of Legislative Changes

The adjustment is partly due to anticipated amendments to the Commercial Act, emphasizing directors' duty of loyalty to shareholders. This has led the NPS to favor companies with strong shareholder return capabilities.

Shift Towards Domestic Consumption

Investments in domestic consumption stocks like Shinsegae and Hyundai Department Store have also seen an uptick, likely in anticipation of benefits from new government policies.

Reduction in Secondary Battery Investments

Conversely, the NPS has decreased its stakes in secondary battery companies, including L&F and EcoPro Materials, citing a sluggish industry outlook and dampened earnings expectations.

Future Investment Directions

Looking ahead, the NPS plans to further reduce its domestic stock holdings in favor of increased overseas investments, aiming for a more diversified and resilient portfolio.