A Study on the Establishment of the Appropriate Base Return of Institutional Investors: Focusing on the Korea Local Finance Association

Abstract

This study aims to reset the effective base return through the analysis of the return on investment by asset group of investment institutions centered on the Fiscal Mutual Aid Association. Since the benchmark return is the basis for the performance evaluation of the asset management results of investment institutions, proper benchmark setting has the effect of maximizing the asset management return. In order to find out whether the benchmark setting of these investment institutions is set to be effective, we can compare the resultsof the benchmark before the change with the results of the standard return analysis after the change. In conclusion, it was analyzed that the pension investment pool MMF was more effective than the MMI operating return as a benchmark for short-term funds, and the weighted average (operating weight) was more effective than the KOSPI and MSCI ACWI weighted average (target ratio).