Samsung Asset and Qraft Achieve Outstanding Returns with Korea Allocation Strategy Retirement Pension RA Algorithm

As interest in artificial intelligence (AI) and big data continues to grow, the era is approaching in which individuals entrust the management of their retirement assets to AI-powered robo-advisors (RA). For investors who are burdened by direct investing and seek stable returns amid market volatility, RAs are emerging as an alternative.

On June 20, Samsung Asset Management announced that the 'Samsung Asset x Qraft Asset Management Korea Asset Allocation_P' strategy retirement pension RA algorithm, launched in collaboration with RA specialist Qraft Asset Management, recorded a six-month return of 25.4%. This is the highest performance among all retirement pension RAs registered in the testbed, including all asset classes and types such as aggressive, risk-neutral, and stability-seeking portfolios.

An RA is a non-face-to-face asset management service that comprehensively analyzes an investor's risk profile, goals, and market conditions to construct the optimal portfolio and automatically issue management instructions. The strengths of RAs are maximized for asset classes like retirement pensions, where consistent and stable long-term management is essential, as they can maintain a consistent strategy.

The RA is automatically operated based on Qraft Asset Management's proprietary macro diagnostic model and data-driven algorithms. It analyzes vast amounts of global data, including economic indicators, corporate earnings, and investment sentiment, to precisely derive investment signals for each asset and reflect them in its strategy.

In individual retirement pensions (IRP), if the subscriber does not provide direct instructions for managing their accumulated funds, the RA of the discretionary investment manager issues instructions on their behalf. The subscription limit is 9 million KRW per IRP account annually, with an increase of 9 million KRW each year. Any remaining limit can be carried forward.

Shim Hyunsoo, Executive Vice President and Chief Investment Officer (CIO) of Qraft Asset Management, explained, "The Korea allocation strategy is an asset allocation strategy that adjusts the sector weightings of domestic stocks and the duration of government bonds using domestically listed ETFs." He added, "The allocation between stocks and bonds is adjusted according to the investor's risk profile. Recently, aggressive allocation to leading sectors such as construction, securities, and software has positively contributed to performance."

Samsung Asset Management will hold a webinar through its official YouTube channel on June 25. The webinar will cover market conditions, an introduction to the RA discretionary service, and the features and strengths of the Samsung Asset Management x Qraft Asset Management algorithmic strategy.