KCGI Management "KCGI Vietnam Fund Achieved 31.7% Return Last Year"

KCGI Asset Management announced on the 7th that the KCGI Vietnam Fund it manages achieved a 31.7% return last year and paid a cash dividend of 11.4%.

The annual return of 31.7% for the KCGI Vietnam Fund exceeded the benchmark by 9.3 percentage points, ranking second among Vietnam funds with assets under management of over 50 billion KRW in South Korea. This performance is significant as it was achieved after the major shareholder change to KCGI in August 2023 and the subsequent overhaul of the management system.

A KCGI Asset Management official stated, “Since the change of major shareholder, we have focused on strengthening the management team, enhancing research functions, and reinforcing risk management systems, thereby reorganizing the entire management system. The visible results are meaningful.”

On the previous day, a cash dividend of 11.4% was paid. Since the fund’s inception in 2016, a cumulative return of 65.1% has been recorded, and the cash dividend paid corresponds to half of that, at 32.8%.

A KCGI Asset Management representative said, “In a highly volatile market, when profits are substantial, we believe it is advantageous for investors to secure part of their investment returns through cash dividends, which is why we decided to pay a high proportion of cash dividends this time. We will continue to pursue investor-friendly policies for customers who trust and invest in our company.”

The official emphasized, “Despite the strengthening of protectionism after Trump’s second term, Vietnam has a favorable structure for manufacturing and export-intensive industries due to its abundant labor force and lower wage levels compared to neighboring countries. The Vietnamese stock market is also positive going forward due to political stability, potential credit rating upgrades, reforms in real estate regulations, and active efforts to attract foreign investors.”

Meanwhile, KCGI Asset Management plans to expand investments not only in Vietnam but also in other Asian regions such as India and Indonesia in the mid to long term. KCGI Asset Management has accumulated Asian investment capabilities by managing funds such as the ‘KCGI Asia Tech Fund,’ which invests in Asian tech companies, and the ‘KCGI Emerging Market Fund,’ which invests in emerging markets including China, Taiwan, Hong Kong, and Korea.

Mok Dae-gyun, the CEO in charge of overall management, is expected to apply his experience from Mirae Asset Management’s India and Singapore branches and his successful know-how in managing global funds such as the ‘Insight Fund’ and ‘G2 Innovator Fund’ to Asian regional investments. CEO Mok said, “We will focus the company’s capabilities on Asian countries that can replace China (AltAsia), including Vietnam, India, and Indonesia, to find more profit opportunities for our clients.”

Additionally, to commemorate the 9th year of managing the Vietnam Fund, KCGI Asset Management is conducting a prize event on its website for its Vietnam Fund investors, offering gold bars and other prizes through a lottery. They will also hold online and offline seminars under the theme ‘Vietnam Investment: Now is the Opportunity.’