Hantoo Asset Management, Korea Investment OCIO Self-Managed Fund Assets Grow 2.5 Times in One Year

Korea Investment Trust Management announced on the 13th that the Korea Investment OCIO Alseora Fund series has surpassed 100 billion KRW in assets under management.

OCIO is an external asset delegated management fund, categorized into neutral, growth (income), and stable (income) types according to each investor's investment tendency and purpose. The growth type is for aggressive investors, the stable type for conservative investors, and the neutral type is designed for investors with a moderate tendency between aggressive and conservative.

According to the fund rating agency KG Zeroin, as of the closing price on the 10th, the Korea Investment OCIO Alseora Fund series' assets under management reached 104.5 billion KRW, growing approximately 2.5 times with an increase of over 50 billion KRW compared to the end of 2023. Except for November last year, the monthly assets under management consistently increased. The fund size appears to have expanded due to the inflow of corporate defined benefit (DB) retirement pension funds.

The fund series' sustained high returns were also evaluated as a key factor in attracting capital inflows.

The Korea Investment OCIO Alseora Fund is a neutral (mixed) product, recording a 6-month return of 3.95% and a 1-year return of 13.02%, ranking first in 1-year returns among all neutral fund products. It outperformed the average 6-month return of 3.20% and 1-year return of 10.35% for all neutral products.

The Korea Investment OCIO Alseora Fund series also achieved excellent results in the Sharpe ratio, a representative risk-adjusted return measure. The fund series' 1-year average Sharpe ratio was 1.65, ranking first in the neutral category. The 1-year average Sharpe ratio for all neutral funds is 1.29.

Korea Investment Trust Management operates not only the neutral product Korea Investment OCIO Alseora Fund but also the growth-type Korea Investment OCIO-DO Alseora Income Fund and the stable-type Korea Investment OCIO-DO Alseora Income Fund. As of the closing price on the 10th, the Korea Investment OCIO-DO Alseora Income Fund recorded a 1-year return of 17.27%, the highest among all OCIO funds. Its 6-month return was 5.80%.

The Korea Investment OCIO Alseora Fund is managed based on a retirement liability index and long-term capital market assumptions (LTCMA) independently developed by Korea Investment Trust Management, reflecting the characteristics of DB-type retirement pensions. The retirement liability index estimates the 5-year average growth rate of retirement benefit liabilities of domestic companies, and the Korea Investment OCIO Alseora Fund aims for a target return exceeding this index. To facilitate the management of corporate DB retirement funds, the fund increases the proportion of bond assets, enhances portfolio stability through low-cost exchange-traded fund (ETF) diversification, and periodic rebalancing. Asset market outlooks are updated and reflected in the portfolio every May and November.

Wonseok Oh, Executive Director in charge of pensions at Korea Investment Trust Management, said, "The Korea Investment OCIO Alseora Fund is a public offering fund and a comprehensive pension solution presented to domestic corporations or individual investors seeking institutional-level fund management stability and profitability, leveraging our extensive experience in managing large-scale funds." He added, "Maintaining an optimal portfolio as a result of a systematic management process led to these good results."

The Korea Investment OCIO Alseora Fund series is available for subscription through a total of 15 distributors, including Korea Investment & Securities, Kookmin Bank, Industrial Bank of Korea, and NongHyup Bank.

This product is a performance-based dividend type, and past returns do not guarantee future returns. Principal loss may occur depending on management results.