DB Financial Investment Launches DB Kwantech Equity Type 3 Wrap

[Asia Economy Reporter Ji-hwan Park] DB Financial Investment announced on the 14th that it will launch the ‘DB Quantech Equity Type No. 3 Wrap’ managed with advisory services from Quantech Investment Advisory.

Following the successful launches of the No. 1 and No. 2 wraps in February and April, respectively, the No. 3 wrap, released two months later, is an advisory-type head office wrap managed according to the client’s investment objectives based on Quantech Investment Advisory’s advisory services, just like the previous wraps. Quantech Investment Advisory selects stocks through a data-driven quantitative strategy (Q-Engine). It uses a specialized risk management model (Q-crisis) to respond to downside risks. DB Financial Investment’s head office portfolio managers operate the wrap based on this advisory information.

The investment algorithm is Quantech Investment Advisory’s multi-factor financial scoring model. This algorithm scores financial items related to growth potential, sales, and cost management, and invests equally in the top 20 stocks with diversified allocation.

The ‘DB Quantech Equity Type No. 3 Wrap’ accepts reservations until June 16 and will be set up on the 17th. The minimum subscription amount is 30 million KRW, the contract period is 12 months, the asset management fee is 1.5% upfront and 1.0% annually in arrears, and the performance fee is charged based on results and can be determined by agreement with the investor.

A DB Financial Investment official said, "Based on the positive market conditions with the KOSPI index approaching an all-time high, the DB Quantech Equity Type No. 3 Wrap, which discovers hidden gems through quantitative analysis strategies, is expected to have another successful launch."