Korea Investment Trust Management announced on the 29th that the Korea Investment Global AI & Semiconductor TOP10 UH fund recorded the highest 1-year return among overseas equity public funds.
According to FnGuide on the 28th, the 1-year return of Korea Investment Global AI & Semiconductor TOP10 UH (C-Pe) was 61.31%, ranking first among overseas equity public funds. This figure overwhelmingly surpasses both the average of 10.51% for 5,091 domestic overseas equity public funds and the average of 29.34% for funds of the same type (information technology sector). Furthermore, it outperformed the Nasdaq 100 index return of 31.59%, which focuses on large-cap technology stocks, during the same period. The recent 3-month and 6-month returns of Korea Investment Global AI & Semiconductor TOP10 UH (C-Pe) were 7.32% and 21.06%, respectively.
The differentiated performance factor is analyzed to be the ultra-compressed portfolio of big tech stocks selected through a stock evaluation system specialized in the artificial intelligence (AI) and semiconductor industries. The Korea Investment Global AI & Semiconductor TOP10 fund composed about 80% of its portfolio with TOP10 value chain stocks that hold monopolistic power. This is overwhelmingly higher compared to the typical 30-40% big tech stock inclusion ratio within the same category.
To select stocks, Korea Investment Trust Management utilizes big data. Using the AI language model known as GPT (Generative Pre-trained Transformer), related stocks are extracted to form the investment universe. Then, based on various data specialized in evaluating related stocks such as △market share △patent technology strength △AI investment scale for each company, investment stocks were selected to form the final portfolio. Additionally, strategic portfolios including newly listed US AI semiconductor companies were used to maximize performance. As of the 19th, the included stocks were △NVIDIA △Microsoft △Broadcom △TSMC △SK Hynix △Alphabet, among others.
Korea Investment Global AI & Semiconductor TOP10 UH simultaneously invested in AI and semiconductor stocks, creating synergy. Due to the winner-takes-all characteristic, the fund concentrated investments on winning companies.
Korea Investment Global AI & Semiconductor TOP10 UH was launched on April 26, 2023, and recently celebrated its first anniversary. To improve investor convenience, the fund recently shortened its redemption cycle. Previously, when applying for redemption, the NAV was applied on the 4th business day (D+3) from the request date, and the redemption payment was made on the 9th business day (D+8). After shortening the redemption cycle, investors can now receive redemption payments on the 5th business day (D+4) by applying the NAV on the 3rd business day (D+3) from the request date. This effectively halved the redemption payment period compared to before.
Kim Hyun-tae, head of the Global Quantitative Management Department at Korea Investment Trust Management and the fund manager, stated, “The Korea Investment Global AI & Semiconductor TOP10 fund maximized performance by concentrating investments on 10 representative companies leading the AI and semiconductor industries domestically and internationally, while also including some competitive candidate stocks. Investors can invest in core companies of the AI value chain at once, from AI-utilizing companies to those with semiconductor technology.”
He added, “Public funds investing in overseas assets typically have long redemption cycles, causing inconvenience for investors to liquidate their holdings. To increase investor satisfaction, we significantly shortened the redemption cycle of the Korea Investment Global AI & Semiconductor TOP10 fund.”
The Korea Investment Global AI & Semiconductor TOP10 UH fund is currently available for subscription through Kookmin Bank, NongHyup Bank, Korea Investment & Securities, Hanwha Investment & Securities, and KB Securities, with sales channels expected to expand gradually.
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