South Korea's National Pension Service Reviews Performance Bonus System as 5-Year Excess Returns Hit Just 0.16%

According to the financial investment industry, on July 21, South Korea's National Pension Service decided to review its current performance bonus system for fund management operations. The review comes after the introduction of absolute performance benchmarking this year led to elevated bonus payouts despite low excess returns. The fund management division achieved only 0.16% in average excess returns over the past five years and failed to outperform its benchmark in three consecutive years. Currency effects accounted for 29.12% of the five-year return contribution, inflating absolute performance metrics even as relative performance lagged.
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