Kyobo AXA Asset Management Launches Samsung Electronics Together Fund

Investment in Samsung Electronics and Material, Parts, and Equipment Companies
Pursuing Stable Returns Alongside Bond Investments

[Asia Economy Reporter Koo Eun-mo] Kyobo AXA Asset Management announced on the 13th the launch of the ‘Kyobo AXA Samsung Electronics Together Securities Investment Trust [Bond Mixed]’ fund (hereinafter referred to as the ‘Kyobo AXA Samsung Electronics Together Fund’), which invests in the long-term growth potential of Samsung Electronics. This is a bond-mixed fund product that combines investments in ‘Sobujang (materials, parts, and equipment)’ companies that can grow alongside Samsung Electronics with bond investments to reduce volatility.

The fund invests approximately 35% in Samsung Electronics stocks. It holds physical stocks equivalent to about 25%, which is the market capitalization weight of Samsung Electronics shares in the Korea Exchange as of March, and additionally purchases futures at about 10% to increase the Samsung Electronics weighting. Furthermore, it invests about 5% (within a range of 0-10%) in Sobujang companies expected to grow together with Samsung Electronics in the long term to seek synergy.

Kyobo AXA Asset Management plans to invest in companies expected to grow alongside Samsung Electronics by utilizing on-site visits and analysts’ ‘Buy list’. The remaining 60% will be invested in domestic bonds and other assets with an average credit rating of AA- or higher to secure stable bond income.

Kyobo AXA Asset Management explained, “Investment in Samsung Electronics will be made at the maximum level allowed within the limits under the Capital Markets Act,” adding, “This reflects the expectation that the stock price will trend upward in the long term along with high growth in the Fourth Industrial Revolution (5G, IoT, autonomous vehicles, etc.) and the semiconductor sector.”

They also explained that from an investor’s perspective, this fund offers the advantage of achieving stable long-term returns compared to direct investment in Samsung Electronics stocks. Kyobo AXA Asset Management stated, “Although Samsung Electronics’ stock price may experience short-term fluctuations, the Kyobo AXA Samsung Electronics Together Fund includes bond assets, which reduces the fund’s volatility, and by investing in Sobujang stocks that grow alongside Samsung Electronics, it can pursue additional capital gains.”

Lee Sang-jin, Head of Channel Sales at Kyobo AXA Asset Management, said, “We planned and prepared this product from early this year, seeing the long-term growth potential of Samsung Electronics even before the surge in demand for Samsung Electronics stocks known as the ‘Donghak Ant Movement’ in March,” adding, “Since it seeks long-term performance of Samsung Electronics and related companies, we expect it to meet investor demand as a pension asset as well.”

This content was produced with the assistance of AI translation services.