Hantoo Asset Management, 3 OCIO Self-Managed Funds... "Top 1-Year Returns by Type"

Korea Investment Trust Management announced on the 18th that three types of Korea Investment OCIO Alaseo Funds ranked first in the domestic external delegated investment (OCIO) public fund retirement online class (C-Re class) for the highest 1-year returns.

The three products are △Korea Investment OCIO Alaseo Fund (C-Re class) △Korea Investment OCIO-DO Alaseo Income Fund (C-Re class) △Korea Investment OCIO-DO Alaseo Income Fund (C-Re class).

According to the fund rating agency Zeroin, as of the 13th, the recent 1-year returns of Korea Investment OCIO Alaseo Fund, Korea Investment OCIO-DO Alaseo Income Fund, and Korea Investment OCIO-DO Alaseo Income Fund were recorded at 16.96%, 18.17%, and 15.62%, respectively. This performance significantly exceeds the domestic OCIO fund’s 1-year average return of 10.77%. The 6-month returns were 9.20%, 11.45%, and 6.66%, respectively.

OCIO refers to an external delegated investment service where external experts act as the Chief Investment Officer (CIO). It is a method mainly chosen by domestic and international funds that operate long-term as a solution to market environment and institutional changes related to defined benefit (DB) retirement pension asset management. OCIO funds implement professional asset allocation techniques and management methods as public funds, and the demand from individual investors who want to entrust asset management to experts continues to increase.

The total size of domestic OCIO funds increased by more than 32%, from 889.1 billion KRW at the end of last year to 1.1767 trillion KRW at the end of May. With a clear trend of capital inflow and fierce sales competition within the industry, it is even more notable that the Korea Investment OCIO fund series ranked first in all types. OCIO funds are classified according to investors’ investment tendencies and objectives into neutral (mixed), income (growth), and income (stable) types. Among them, the income type is classified as a product for aggressive investors, and the income type is for conservative investors.

The Korea Investment OCIO Alaseo Fund series’ assets under management have steadily increased from about 42 billion KRW at the end of last year to about 68.6 billion KRW currently. In particular, the C-Re class (retirement pension-online class), which can be subscribed through defined contribution (DC) or individual retirement pension (IRP), has increased by more than 12.6 billion KRW since the beginning of the year, gaining popularity among individual investors.

This performance is thanks to Korea Investment Trust Management’s proprietary retirement liability index and long-term capital market assumptions (LTCMA), developed by reflecting the characteristics of defined benefit (DB) retirement pensions, which maximized the operational performance and efficiency of the Korea Investment OCIO Alaseo Fund series. Korea Investment Trust Management updates the retirement liability analysis and index annually based on disclosure data from about 700 companies and reflects medium-term market outlooks in portfolios every May and November.

Wonseok Oh, Executive Director in charge of pensions at Korea Investment Trust Management, said, “As the size of DB retirement pension assets increases, demand for performance-linked funds such as OCIO is expected to grow. It will also be a good investment alternative as a global asset allocation type in personal pension investments such as DC or IRP.” He added, “The Korea Investment OCIO Alaseo Fund series will continue its growth trend with a management process established from a long-term perspective and an optimal portfolio.”