Korea Investment Management Achieves Triple Success in Public Fund Market: Returns, Inflows, and Product Competitiveness

Space Technology and AI Themed Funds Deliver Strong Returns
Bond Funds Lead Industry in Asset Growth
Profit-and-Loss Differentiated Funds See Series of Early Redemptions

Korea Investment Management announced on January 7 that it achieved solid results in last year's public fund market through strong returns, increased fund inflows, and the launch of products that reflected investor demand.

In terms of returns, theme-based public funds that captured global megatrends led the performance. According to FnGuide, the "Korea Investment Global Space Technology & Defense Fund" recorded an annual return of 57.59% by selectively investing in global key companies, focusing on the structural growth of the space industry and the defense sector. The fund does not limit itself to the defense sector but includes the entire value chain of the space industry in its portfolio, such as satellite communications, launch vehicles, and space data.

The "Korea Investment Global AI & Semiconductor TOP10 Fund" also posted an annual return of 35.55% last year by employing a strategy that concentrates investment in the top 10 companies with dominant positions in the artificial intelligence (AI) industry. Amid continued expansion of AI infrastructure investment by global big tech companies and a structural increase in demand for high-performance semiconductors, the strategy of focused investment in the top 10 core stocks delivered strong results. The company cited maximizing the industry’s growth potential through selection and concentration as a key differentiator.

In terms of fund inflows, the domestically focused bond fund "Korea Investment Credit Focus ESG Fund" showed overwhelming growth in the public fund market. First launched in November 2008, this fund saw its assets under management increase by 1.09 trillion won since the beginning of the year by investing in high-quality credit bonds. The overseas bond fund "Korea Investment MAN Dynamic Income Monthly Dividend Fund" also saw its assets under management increase by 342.2 billion won last year, accounting for 17.53% of the total growth in the overseas bond fund category.

Profit-and-loss differentiated funds, which aim to protect investors while achieving target returns, have also been reporting early redemption. Managed by Korea Investment Management, with Korea Investment Holdings and its affiliates participating as subordinated investors and absorbing up to a -15% loss first for each underlying private fund, these products enhanced stability even during market downturns. The "Korea Investment US Economic Leading Industry Fund," launched in January last year, achieved its target return of 15% and will be redeemed early next month after meeting the minimum holding period of one year. The "Korea Investment Global Next Wave Fund," introduced in June last year, also achieved its target return in just half a year and will proceed with early redemption in July this year, after the minimum holding period. The "Korea Investment Korea-US Next Innovation Growth Fund," which began fundraising early last month, attracted 111.3 billion won in just eight business days, based on a strategy of investing in AI technology stocks and others.

Korea Investment Management has also built a diverse lineup in the rapidly growing target maturity fund market, which has been attracting increasing investor interest. Target maturity funds automatically shift their portfolios from risky assets to safe assets once a pre-set target return is reached. By locking in profits early during market upswings and reducing market volatility risk afterward, these funds are rapidly expanding to meet investor demand for moderate returns and moderate risk. In response to this trend, Korea Investment Management has introduced a variety of target maturity funds, including Korea Investment China Big Tech & AI Leaders Target Maturity, Korea Investment Hang Seng Tech Step-up Dollar Cost Averaging Target Maturity, Korea Investment Shareholder Return Level-up Target Maturity, and Korea Investment Together K-Policy Beneficiaries Dollar Cost Averaging Target Maturity, thereby expanding the range of choices for investors.

A Korea Investment Management official stated, "Through the proactive supply of products in response to last year's market changes, we were able to confirm positive indicators in both returns and fund inflows," adding, "We will continue to closely analyze changes in the investment environment and consistently introduce a variety of products that benefit investors."

Funds are performance-based products, and past returns do not guarantee future profits. Principal loss may occur depending on market conditions.