Korea Investment & Securities Differentiates Products Through White Labeling

[Asia Economy Reporter Koh Hyung-kwang] Korea Investment & Securities is actively utilizing 'White Labeling,' which selects excellent products from overseas asset management companies and provides them to domestic investors, to supply differentiated products. In particular, this year, the company plans to expand its product line that lowers volatility and pursues fixed income.

White Labeling refers to a practice where the company that creates the product is different, but the company responsible for distribution and sales sells the product under its own brand. In the case of funds, the fund distributor partners with the asset manager operating a specific fund to develop and sell products managed with the same strategy through delegated management or fund of funds investment. From the investor's perspective, it provides an opportunity to invest in funds from famous overseas asset managers that are not sold in the domestic market.

Korea Investment & Securities has been discovering promising global funds since 2016 and providing products to domestic investors through White Labeling. Through continuous collaboration with global asset managers such as State Street Global Advisors (SSGA), one of the world's top three asset managers, Wellington Management ranked 8th globally by institutional assets, DoubleLine Capital, Origin, and Artisan Partners, White Labeling products have been launched. Through this, a lineup of overseas investment products in various sectors such as global stocks, U.S. stocks, global tech, emerging stocks, and global bonds has been established.

Despite market volatility, these funds have delivered stable returns exceeding the market average. As of the 17th, the Korea Investment Wellington Global Quality Fund, an offshore fund, has a cumulative return of 58.4% since inception and a 1-year return of 23.3%. The Korea Investment DoubleLine U.S. Dual Value Fund, which invests in large-cap U.S. value stocks, recorded returns of 18.3% since inception and 22.3% in the past year.

Korea Investment & Securities plans to introduce additional White Labeling products this year as well. Following the launch of the 'Woori G Artisan Global Opportunity Fund' last month in partnership with the global asset manager Artisan Partners, the company intends to release White Labeling products through additional discussions with three asset managers by the end of this year. Kim Seong-hwan, head of the individual customer group at Korea Investment & Securities, said, "We are developing funds in various fields and types, such as infrastructure and European stocks, reflecting market trends and investment trends," adding, "We will focus on discovering products that lower volatility and pursue fixed income."