Business & Finance
Korea Pension Fund’s Pivot Amplified Stock Swings, Barclays Says
Key Points
Korea Pension Fund’s Pivot Amplified Stock Swings, Barclays Says A move by the National Pension Service to temporarily suspend portfolio rebalancing has fueled volatility in South Korea’s stock market and added pressure on the won, according to Barclays Plc. “While the rebalancing waiver contributed to superior returns for the NPS and Kospi, we believe the key tradeoff was really the increased volatility,” Bum Ki Son, an economist at Barclays, wrote in a note. “Pensions are typically...
Korea Pension Fund’s Pivot Amplified Stock Swings, Barclays Says
A move by the National Pension Service to temporarily suspend portfolio rebalancing has fueled volatility in South Korea’s stock market and added pressure on the won, according to Barclays Plc.
“While the rebalancing waiver contributed to superior returns for the NPS and Kospi, we believe the key tradeoff was really the increased volatility,” Bum Ki Son, an economist at Barclays, wrote in a note. “Pensions are typically considered a stabilizer in the financial market. However, we believe the NPS tweak of its operations became an amplifier instead.”