Fount "Asset Allocation Robo-Advisor Products, Alternative to Fund Investment"
[Asia Economy Reporter Minji Lee] AI asset management company Fount announced that asset allocation-type robo-advisor products are gaining attention as an alternative to fund investment.
According to the Korea Financial Investment Association on the 11th, the balance of stock-type public funds sold domestically decreased by 11%, from 64.7693 trillion won at the end of the first half of 2018 to 57.7632 trillion won as of the end of July this year. The chronic poor returns sustained over several years and the fund market distrust caused by private equity fund incidents such as Lime and Optimus have significantly reduced the fund balance.
On the other hand, the subscription amount for Fount's fund advisory products increased by more than 1500% from September 2018 to July this year. This is attributed to the performance management and hedge (risk defense) capabilities of Fount's sophisticated AI algorithms, with returns showing stable figures according to investment preferences.
This product demonstrated excellent defensive power by posting a 2% annual return even during the sharp market drop caused by COVID-19 in March. Fount's robo-advisor (RA) recorded an average annual return of 9.6% for aggressive funds, 7.8% for neutral funds, and 4.8% for conservative funds from June 2018 to July this year. Last year's average annual returns exceeded 22.4% for aggressive, 14.5% for neutral, and 6.6% for conservative types. The highest cumulative return to date is 41.37%, recorded by an investor who started investing in aggressive funds in June 2018.
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Kim Minbok, Chief Investment Officer (CIO) of Fount, explained, "This is the result of focusing simultaneously on optimal portfolio composition, stable performance management, and risk management," adding, "Based on advanced AI algorithms, we constructed a performance-based fund portfolio without distinction between domestic and international asset management companies and performed timely rebalancing according to market changes."
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