April 1 (Bloomberg) — South Korea’s biggest pension funds are cutting holdings of local debt to buy stocks in the U.S. and Europe, saying the days when the Asian nation could be counted on to outperform developed markets are in the past.

Both Korea Teachers’ Pension and Government Employees Pension Service plan to reduce domestic notes to below 50 percent of assets in 2014 and add developed-world equities, managers of the funds say. South Korea’s government bonds returned 1.3 percent this year, trailing all Asian markets except the Philippines, and the won slid 1 percent versus the dollar, data compiled by Bloomberg show. The Kospi stock index fell 1.2 percent, while the MSCI World Index rose 0.7 percent.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?



Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2023 ALM Global, LLC. All Rights Reserved.