Hosting IPC Seoul 2011

National Pension Service stages annual global pension conference with heads of 27 pension funds from around the world

The National Pension Service (NPS) hosted the International Pension Conference (IPC) Seoul 2011 at Hotel Shilla in Seoul from July 11-13 with the main subjects being the Lessons Learned from the 2008 Financial Crisis & Tasks, a Study of Successful Investments of Pension Funds and the Direction of Development of the Pension Industry. The IPC is 40 years old this year and has held an annual meeting ever since its launch for the heads of public and private pension funds to discuss the world economy, financial trends and ways to operate pension funds.
Pension funds operated by the participants of the Seoul event have net assets totaling 3,620 trillion won. The IPC conference is like the Davos Forum for pension fund operators who are seeking new investment opportunities along with in-depth discussions on various issues related to the operation of pension funds.
The Seoul event consisted of business, social and post-conference programs. At the social program, the participants experienced Korea's traditional culture and lifestyle, and at the post conference program, they visited Gyeongju, the ancient capital of the Shilla Dynasty, and appreciated the ancient culture of the kingdom.
The major participants included President Takahiro Mitani, the head of Japanese pension fund GPIF, which has $1.364 trillion in the fund, as well as top managers of other pension funds, both public and private, numbering some 40, including Asia Executive Director Stan Lee of APG Asset Management of the Netherlands, Gen. Director Zhan Yuyin of the National Council for Social Security Fund 1 of China, and CEO David Denison of the Canada Pension Plan Investment Board (CPPIB).
Chairman Jun Kwang-woo of NPS met individually with a number of pension fund heads including President Mitani of GPIF and CEO Denison of CPPIB and discussed strengthening strategic investment tie-ups and joint investment strategies. Chairman Jun said in his opening speech at the Seoul IPC event that IPC Seoul 2011 is a venue for heads of pension funds around the world to discuss various issues on the operation of pension funds and the right opportunities for NPS to strengthen its global competitive edge and hoped that the event would help the further development of the global financial market and the world economy and would also be a valuable venue for seeking a new direction for development.
We also should make our networks among international pension funds strong through the Seoul event and make this an opportunity to boost the international image of NPS, Jun said.
The Seoul IPC meeting participants voted on the prospects of securities markets and promising investment regions. Thirty-two percent of the participants said the 2008 global financial crisis had no effect on income distribution, 24 percent said they will expand the investment ratio of bonds and 20 percent said they will expand investments in emerging markets. Many of them thought that global economic trends have not changed following the financial crisis and the economies of emerging market countries have been leading the growth of the world economy.
The most pressing issue among attendees at the meeting, at 50 percent, were strategies to improve their investment returns followed by 21.9 percent who said it was effective management systems for pension funds. Many of them said they expect investment returns to be low this year, as low interest rates and slow growth in advanced nations would continue, requiring special strategies to boost returns.
Some 46.9 percent of the participants voted that emerging market countries are promising countries for investments in real estate, followed by 43.8 percent saying North America offers better opportunities for real estate investments.
The energy sector was noted as the most promising investment area by 37.9 percent of the participants followed by consumer goods at 31 percent, guided by the belief that the economy would improve slowly but steadily, boosting the prices of energy and raw materials, along with the expectation of various, effective measures to invigorate the economy by many countries. Regarding U.S. Treasury bonds after the conclusion of the QE2 stimulus measure, 48.5 percent said weakness would continue to persist, while 24.2 percent said the government-backed securities were comparatively stable. nw

(Photo above) Chairman Jun Kwang-woo of National Pension Service delivers his opening speech at the 2011 IPC Seoul held from July 11-13 at Hotel Shilla in Seoul. (Below photo) A general view of an event at the IPC Seoul 2011 where heads of 27 large public and private pension funds participated and discussed major issues facing the pension fund operations including the world economy..

Photo on Courtesy of NPS