Fidelity Asset Management's 'Global Technology Fund' Reaches 3 Trillion KRW in Net Assets

The Largest Domestic Equity Fund in Scale

[Asia Economy Reporter Minji Lee] Fidelity Asset Management announced on the 27th that the net assets of the ‘Fidelity Global Technology Securities Sub-Investment Trust (Equity - Fund of Funds)’ reached a total of 3.1576 trillion KRW, making it the largest equity fund by net assets (excluding ETFs) established in Korea.

This fund was established domestically in June 2015 and is one of the representative funds investing in global technology stocks. After surpassing 1 trillion KRW in net assets in February last year, it continued its rapid growth alongside the global technology stock boom during the pandemic, reaching 2 trillion KRW in January.

In terms of returns, as of the previous day, it achieved a 42.44% return over the past year, and since inception, the performance reached 238.93%, recording an attractive annual average return of 39.09%.

The fund invests in approximately 40 to 60 companies with high conviction, including not only companies developing technology and providing related services worldwide but also companies benefiting from technological innovation in sectors such as consumer goods, distribution, and finance.

Based on a differentiated strategy, the fund actively pursues excess returns by investing in stocks not included in the reference index (MSCI AC World Tech. Index), unlike index funds or ETFs. It manages risk by investing in stocks with positive long-term growth prospects, excellent sales and profits, and reasonable valuations, rather than those with excessively high valuations or those receiving excessive attention as thematic stocks. Thanks to this management strategy, the fund has maintained steady performance even during periods of stock market volatility, continuing to attract market interest.

The technology sector themes the fund focuses on include cloud, AI, electric vehicles, video games, and 5G. Since these do not move in the same direction under all market conditions, the fund constructs a diversified portfolio within the technology sector to pursue attractive returns while managing risk.

CEO Jun Kwon said, “As interest and importance in technology stocks continue to rise, the fund’s differentiated strategy and attractive level of performance have been recognized,” adding, “Although there are many factors that could cause market volatility in the future, the technology sector, composed of various sub-sectors, is expected to provide many investment opportunities not only for the remainder of 2021 but also over the longer term.”