Hantoo Asset Management Launches Two 'ACE+' Public Fund Series for ETF Investment

Korea Investment Trust Management announced on the 19th that it has launched two types of public offering funds in the ‘ACE+’ series for investors interested in EMP (ETF Managed Portfolio) funds: the Korea Investment ACE+ Global New Growth Fund and the Korea Investment ACE+ US Nasdaq Fund. The newly introduced ‘ACE+’ brand will be used for Korea Investment Trust Management’s public offering funds that pursue excess return (+) strategies based on ETFs.

The Korea Investment ACE+ Global New Growth Fund is a hyper-diversified investment product that invests in various domestic and international ETFs, including ACE ETFs. The fund is managed by selecting ETFs through artificial intelligence (AI) developed in-house by Korea Investment Trust Management and the responsible portfolio managers. This fund focuses on ETFs related to future new growth themes such as AI and semiconductors, which have recently attracted significant attention, selecting target ETFs based on five factors.

The five factors are △‘Performance,’ measured by metrics such as compound annual growth rate (CAGR) and volatility △‘AI Score,’ which identifies the latest ETF theme trends based on the GPT AI model △‘Big Data Score,’ analyzed through venture capital and patents △‘Recommendation Strength,’ evaluated by the extent of ETF marketing exposure △‘Fund Flow,’ reflecting trends in the listing of ETFs with the same theme and theme-specific capital flows. The ETFs included will be rebalanced monthly to reflect market conditions.

The Korea Investment ACE+ US Nasdaq Fund is a product that pursues excess returns by including Nasdaq 100 index-tracking ETFs, which have consistently been popular among individual investors, as the core portfolio, while also incorporating high-growth US individual stocks, thematic ETFs, and US initial public offering (IPO) stocks into the strategic portfolio.

Both funds are characterized by active utilization of AI. The Korea Investment ACE+ Global New Growth Fund actively uses AI and big data scores in the process of selecting ETFs related to new growth drivers, while the Korea Investment ACE+ US Nasdaq Fund additionally employs big data analysis and proprietary AI models for thematic ETF investment strategies, aiming for returns exceeding the Nasdaq 100 index.

Additionally, to maximize the compound interest effect for long-term investors, the management fee has been reduced to as low as 0.01%, and liquidity has been enhanced by primarily including domestic ETFs and shortening the redemption cycle to 4 business days. This redemption cycle is only one day longer than the cash conversion period for stocks or ETFs.

The management of the two funds is entrusted to Jeminjeong, Head of Global Quantitative Management at Korea Investment Trust Management, and Hyuntae Kim, also a fund manager. The two fund managers explained, “These two funds are products that professionally select and manage ETFs through the synergy between the expertise of portfolio managers and proprietary AI,” adding, “They can be the optimal alternative for existing investors who face difficulties in ETF investment and management, as well as for new investors starting ETF investment.”