Korea Investment & Securities Launches 'White Labeling Fund Lab' Investing in Renowned Overseas Funds

[Asia Economy Reporter Koh Hyung-kwang] As the economy rapidly deteriorates due to the impact of the novel coronavirus infection (COVID-19), uncertainty in the stock market is also increasing. In such a situation, it is quite difficult to determine the bottom of stocks and find the right time to buy.

Korea Investment & Securities recently launched the 'Korea Investment White Labeling Fund Wrap' to address these concerns of investors. This fund wrap is a wrap account (comprehensive asset management) product that diversifies investments into carefully selected leading overseas white labeling funds. A white labeling fund refers to a fund developed and sold by a sales company in partnership with an overseas asset manager, operating under the same strategy as the respective fund through delegated management or fund-of-funds investment. From an investor's perspective, it is one of the opportunities to invest in funds from renowned overseas asset managers that were previously accessible only to institutional investors in Korea.

Since 2016, starting with Wellington Management, Korea Investment & Securities has collaborated with major global asset managers such as Kendriam, Origin, and T. Rowe Price to launch white labeling funds. To date, they have prepared funds from eight overseas asset managers with eight different investment styles. Through this, they have built a lineup of overseas investment products across various sectors including global stocks, U.S. stocks, U.S. small and mid-cap stocks, global tech, emerging market stocks, and global bonds.

By investing in the White Labeling Fund Wrap, investors can manage these various styles of white labeling funds within a single account. Investors can choose an aggressive type that holds up to 100% equity assets or a neutral type that maintains around 50%, allowing asset allocation according to their investment preferences. When managing financial products through a wrap, maturity management and portfolio investment become easier, and rebalancing can be performed promptly to respond to volatility. Another advantage is that no separate sales fees are charged for fund replacements, reducing financial costs. Lee Jun-jae, Head of Investment Products Division, said, "Using wraps that facilitate asset rebalancing to diversify investments in funds from excellent overseas asset managers can be a good investment strategy for domestic individual investors as well."

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