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Photo courtesy of Yonhap News |
[Alpha Biz= Ellie Kim] South Korea’s National Pension Service saw the value of its U.S. equity portfolio decline by more than KRW 5 trillion in the first quarter, reflecting market volatility driven by geopolitical tensions and rising oil prices.
According to its 13F filing with the U.S. Securities and Exchange Commission, the NPS held U.S. equities worth $131.7 billion (KRW 198.4 trillion) at the end of Q1, down from $135.1 billion (KRW 203.5 trillion) at the end of last year.
The decline was largely driven by losses in major tech holdings. NVIDIA fell from $9.34 billion to $8.94 billion, while Apple dropped from $8.21 billion to $7.87 billion and Amazon declined from $4.58 billion to $4.26 billion.
As valuations fell, the weight of big tech within the portfolio also decreased. NVIDIA’s share slipped from 6.92% to 6.79%, Apple from 6.08% to 5.98%, Microsoft from 5.20% to 4.19%, and Meta Platforms from 2.25% to 2.04%.
Market sentiment weakened amid escalating tensions in the Middle East, including concerns over a potential blockade of the Strait of Hormuz and surging global oil prices. Additional pressure came from rising risks of large-scale redemptions in the U.S. private credit market.
Amid the volatility, the NPS increased exposure to energy and defensive stocks, newly acquiring shares in Exxon Mobil (0.39%), Chevron (0.21%), and Johnson & Johnson (0.19%). Meanwhile, it trimmed positions in several holdings, including AppLovin, Boston Scientific, Capital One Financial, and American Express.
The portfolio shift suggests a defensive rebalancing strategy in response to heightened geopolitical and financial market uncertainty.
Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)
