Korea Investment Trust Management announced on the 30th the launch of the Korea Investment Japan Core Growth Theme Fund, which invests in Japan's key growth industries.
The Korea Investment Japan Core Growth Theme Fund is characterized by selecting and focusing investment on three core growth themes representing Japan. The three themes are △Semiconductors △Entertainment △Automation & Healthcare. The fund plans to construct a portfolio of 30 stocks by selecting 10 stocks per theme from those listed on the Tokyo Stock Exchange (TSE). The weighting per stock will be maintained at an equal level, and no currency hedging will be implemented.
The Korea Investment Japan Core Growth Theme Fund aims to achieve higher returns compared to the Japan TOPIX index through concentrated investment in the three core themes with high growth potential. Japan's semiconductor industry is competitive based on government subsidies and world-class technology, while the entertainment industry shows steady growth thanks to the animation and gaming sectors that have expanded their supply beyond the Japanese market to the global stage. Lastly, the automation & healthcare industry has accumulated technological capabilities in response to social structural changes such as aging, resulting in Japan having many market-leading companies.
The selection of stocks by theme is handled by the delegated asset manager, Tokio Marine Asset Management (hereinafter Tokio Marine AM). Tokio Marine AM is a subsidiary of Tokio Marine Holdings, Japan's largest non-life insurance group, established in 1985.
Korea Investment Trust Management has entrusted Tokio Marine AM with research, analysis, and management tasks related to foreign currency assets, considering that the Korea Investment Japan Core Growth Theme Fund invests in stocks listed on the Japanese stock market.
Another reason for delegating management to Tokio Marine AM, which ranks in the top 10 among Japanese asset managers by assets under management (AUM), is its strength in research on small- and mid-cap and growth-style stocks. Tokio Marine AM plans to construct an investment universe of about 4,000 stocks considering liquidity and soundness indicators, then select the final 30 stocks for the portfolio through research and other processes.
The Korea Investment Japan Core Growth Theme Fund is currently available for subscription through Korea Investment & Securities, with plans to expand sales channels in the future. The fund fees vary by class: △Class A 1.41% △Class A-e 1.155% △Class C 1.90% △Class C-e 1.40% △Class C-Pe 1.36%. Detailed information can be found in the fund prospectus or on the Korea Investment Trust Management website.
Moon Hyun-duk, Head of Overseas Investment Strategy at Korea Investment Trust Management, explained, "Amid the US-China hegemonic conflict, Japan's geopolitical and strategic value is increasing, and considering that the real effective exchange rate of the yen is at a historic low, now is the right time to invest in Japan."
He added, "Among Japanese stocks, the semiconductor, entertainment, and automation & healthcare sectors are expected to show high performance in the mid to long term based on global competitiveness. Investing in the Korea Investment Japan Core Growth Theme Fund allows investors to enjoy the benefits of selective and diversified investment in three core industries with different growth cycles, achieving two goals at once."
Meanwhile, it should be noted that the Korea Investment Japan Core Growth Theme Fund is a performance dividend-type product, and principal loss may occur depending on the management results.
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