Military Mutual Aid Association Selects 9 Domestic and International Stock Asset Management Firms

The Military Mutual Aid Association announced on the 2nd that it has selected nine domestic and overseas equity fund asset management companies. This is the first time among domestic mutual aid associations to select asset management companies that align with the value-up program.

[Photo by Military Mutual Aid Association]

Earlier, the Military Mutual Aid Association conducted a public recruitment starting in March to select asset management companies. After quantitative and qualitative evaluations including management scale and proposal presentations, and thorough due diligence and investigation of the asset management companies, the selection process was completed.

The Military Mutual Aid Association broke the stereotype that institutions are conservative and proactively responded to the value-up program. A representative of the Military Mutual Aid Association explained, "To resolve the undervaluation in the domestic market, we proceeded with this selection process based on the rationale that companies need to enhance shareholder value (value-up) and the government policy is expected to have mid- to long-term effects."

For the domestic sector, dividend-type asset management companies selected were ▲BNK Asset Management ▲The J Asset Management ▲DB Asset Management ▲V&S Asset Management, and shareholder value-type companies selected were ▲Truston Asset Management and ▲VI Asset Management. For the overseas sector, ▲NH-Amundi Asset Management ▲Kyobo AXA Asset Management ▲Daol Asset Management were selected.

The overseas stock markets have valuation burdens due to higher growth rates compared to the domestic stock market. The Military Mutual Aid Association anticipates increased volatility due to delayed U.S. interest rate cuts and selected three asset management companies capable of operating specialized funds that can respond to market volatility rather than traditional benchmark and plus-alpha strategies.

Lee Sang-hee, Director (CIO) of the Financial Investment Division, stated, "Through this selection of domestic and overseas asset management companies, it is expected to build a balanced portfolio and diversify investment destinations, enabling continuous profit generation," and added, "We will strive to safely manage the valuable assets of our members and return high profits to them."