Profitability Rising After KCGI Acquisition Despite Lower Rankings
Unique New Public Offering Funds Established
CEO Kim Byung-chul: "Increase in Public Offering Funds Is Significant"
KCGI Asset Management announced on the 16th that its net assets of public equity and mixed funds increased by 22% within one year of changing its name last year.
This was the result of attracting new customer funds by raising previously low-ranking returns to the top ranks. By launching distinctive new funds, KCGI Asset Management is making its name known in the public fund market.
KCGI Asset Management CEO Kim Byung-chul said, "Despite the continued difficult environment in the public fund market since the name change on August 15 last year, we were able to continue growing thanks to the interest and support of our customers." He added, "Recently, government authorities are also promoting the activation of public funds, which are a representative means of asset growth for the entire population," emphasizing that "the growth of public funds achieved by KCGI Asset Management is very meaningful."
As of the end of last month, KCGI Asset Management's net assets of public equity and mixed funds increased by 22% to reach 1.84 trillion KRW. The amount under management increased by 9% year-on-year to 1.57 trillion KRW.
Looking at the one-year return rankings for funds with over 50 billion KRW in assets by type, domestic equity funds jumped from 34th place at the end of July last year to 2nd place at the end of July this year. In overseas types, the TDF (Target Date Fund) rose from 13th among 17 asset managers last July to 3rd among 19 asset managers this year.
As returns attracted attention, the KCGI Junior Fund, KCGI Freedom TDF, and overseas funds received three awards including the 'KCAB Korea Consumer Evaluation Best Brand Award,' 'Korea Premium Brand Award,' and 'Financial Investment Association Chairman's Award at the Financial Investment Awards.'
Vice Chairman Kim Byung-chul explained, "After being acquired by KCGI, recruiting talented personnel for risk management and return improvement, and newly establishing and applying investment principles and processes contributed to the rise in returns."
The four new public funds launched after the name change gained popularity with differentiated concepts. As of the end of last month, 188.4 billion KRW in funds flowed in, contributing to the increase in assets under custody.
They launched the ‘KCGI ESG Co-Growth Fund’ investing in improving governance of Korean companies, the ‘KCGI Public Offering High-Yield Fund’ aiming for additional returns through public offering investments in high-yield bond funds, the ‘KCGI US S&P 500 TOP10 ETF’ investing in core high-quality US stocks, and the ‘KCGI Ultra-Short-Term High-Quality Bond Fund’ investing in highly liquid ultra-short-term high-quality bonds.
Vice Chairman Kim stated, "Since taking office last year, we will not lose our original intention regarding the four promises made to our customers: strengthening pension asset management, enhancing ESG investment, expanding global investment, and reinforcing capabilities as a comprehensive asset management company." He expressed his ambition, saying, "We will fulfill our role as a reliable investment partner that anyone can trust and entrust."
KCGI Asset Management is holding an event on its website to commemorate the first anniversary of the name change. Among participating customers, 815 will be selected by lottery to receive prizes such as TVs, cake gift certificates, and coffee coupons.
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