Korea Investment Trust Management announced on the 9th that it held the 'ACE India ETF New Listing Seminar' at the Korea Financial Investment Association.
This seminar was held ahead of the listing of two types of active India investment exchange-traded funds (ETFs). Korea Investment Trust Management will list the ACE India Consumer Power Active ETF and the ACE India Market Representative BIG5 Group Active ETF on the Korea Exchange on the 10th. This is the first time in the Asian market that Korea Investment Trust Management has introduced ETFs investing in the Indian market in an active format.
The first presentation was given by Hyun Dongsik, Head of Overseas Business Division at Korea Investment Trust Management. Executive Director Hyun is a fund manager with about 27 years of experience and served as the head of Korea Investment Trust Management’s Shanghai office for 12 years from 2010 to 2022. Recently, he published 'Next China: Focus on India' titled 'India Consumer Power, Seizing a New Future,' utilizing his in-depth analysis of the Chinese market.
Hyun analyzed, "In the process of global supply chain restructuring, the only country that can replace China, which has a population of 1.4 billion, is India." He added, "India not only has the same population of 1.4 billion as China but also is implementing Prime Minister Modi’s manufacturing promotion policies that mimic China’s growth strategy, making it highly likely to grow through a development process similar to China’s."
He continued, "Based on the analysis of China’s growth cases, we selected India’s growth industries," and said, "Representative sectors include discretionary consumer goods such as home appliances, automobiles, and healthcare, which are most likely to see increased demand as incomes rise, as well as infrastructure sectors essential for economic development."
He also elaborated on the newly listed ETFs. Hyun explained, "The ACE India Consumer Power Active ETF focuses on the discretionary consumer goods sector, while the ACE India Market Representative BIG5 Group Active ETF particularly targets infrastructure and renewable energy sectors," adding, "We identified and included Indian companies expected to show growth trends most similar to leading Chinese companies in each sector."
The second presentation was conducted by Kim Seunghyun, who oversees marketing for Korea Investment Trust Management’s ACE ETFs. Kim stated, "Although the Indian market is mentioned as the next China, considering that it is the world’s most populous country, the growing middle class, and the government’s active support policies, it is more likely to become 'Beyond China.'" He emphasized, "The most important factor when investing in a growing market is 'how to invest,' and growth sector-focused investment that can directly reflect the benefits of growth is crucial."
He added, "Although products investing in the Indian market are already listed domestically, ACE ETF is the first active type," and said, "We hope investors include a mix of the ACE India Consumer Power Active ETF, which invests 100% in discretionary consumer goods, and the ACE India Market Representative BIG5 Group Active ETF, which focuses on five representative groups benefiting from India’s economic growth, in their portfolios."
Kim particularly noted, "Understanding the culture of the country is essential for successful overseas market investment," and said, "To provide investors with more information about the Indian market, ACE ETF plans to publish an emerging investment guidebook within this month and release video content featuring Professor Lee Wonbok, author of 'Faraway Neighbors,' and Lucky, an Indian-born broadcaster, coinciding with the listing date of the two ACE India ETFs."
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