Hyundai Motor Securities "Invest in Promising Growth Subscription Economy Funds"

'Kiwoom Global Subscription Economy' Fund Records 4.69% Monthly Return as of the 23rd

[Asia Economy Reporter Kum Boryeong] Amid continued low interest rates and low growth due to the impact of the novel coronavirus infection (COVID-19), funds investing in promising growth sectors such as the subscription economy are attracting attention.

According to Hyundai Motor Securities on the 26th, the 'Kiwoom Global Subscription Economy' fund recorded a one-month return of 4.69% as of the 23rd. This fund, established last month, has an asset size of about 7.6 billion KRW, with a return of 7.92% since inception.

The subscription economy is considered a 'new normal trend' that has gained attention after the COVID-19 issue. Following the popularity of the 'sharing economy,' where specific goods are borrowed and used without ownership, the subscription economy, which provides services centered on individuals after the spread of COVID-19, is establishing itself as a new economic system. Thanks to the development of ICT, this subscription economy is expected to continue growing steadily.

The Kiwoom Global Subscription Economy fund invests in companies that provide goods or services through a subscription model, where subscribers pay fees periodically. This model guarantees a certain level of regular income. The fund mainly includes companies with high market share that naturally transition to a subscription business model or those with strong growth potential related to the subscription economy. Representative examples include video content providers such as Netflix, software providers like Adobe and Microsoft, and companies offering music streaming or rental-type home appliance services. The investment regions cover not only the domestic market but also the United States, Japan, and Europe.

A Hyundai Motor Securities official explained, "Even amid global market turmoil, there was a sector that remained relatively stable, and that was the information technology sector." He added, "Looking at the year-to-date returns by fund type, the K200 index type recorded -3.96%, global equity 1.35%, North American equity 3.80%, and European equity -8.60%, whereas the information technology sector, which constitutes a large part of the subscription economy, showed a return of 7.61%."

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