Kang Bang-cheon, Chairman of Asset Plus Management, "Misunderstanding That Active Funds Don't Make Money"

[Asia Economy Reporter Minji Lee] Active funds have expressed regret over the misconception that they are "only more expensive in fees and do not make money" compared to passive funds.

On the 26th, Kang Bang-cheon, Chairman of Asset Plus Asset Management, made this remark during an online press conference held in the morning. Chairman Kang said, “Active funds are about holding on to good companies that can last a long time in the fund,” adding, “The idea that active funds are only expensive in fees and do not make money is a misunderstanding about active funds.”

Chairman Kang described companies that can last a long time as 'great companies.' He explained that attention should be paid to companies that stand out in innovation and consumption in the process where innovation leads to growth, growth leads to income, and income leads to consumption.

Chairman Kang said, “Areas gaining interest in innovation include infrastructure sectors such as renewable energy and big data,” adding, “When new infrastructure is established, new innovations can arise. Also, big data is fundamental for the advancement of artificial intelligence.” He continued, “In the consumption sector, major companies that support our lives can be the target,” and assessed, “Asset Plus Asset Management’s funds discover such companies and generate returns exceeding the benchmark (BM).”

Looking at the performance released by Asset Plus Asset Management, all have recorded returns above the BM. The ‘Asset Plus Korea’ fund posted a 26.18% return over the past year, exceeding the BM of 13%. It also achieved a 2.54% return over the past three years, which is higher than the BM (-4.5%). Another fund, ‘Asset Plus China,’ recorded a 1-year return of 46.86%, surpassing the BM (31.14%) by 15.72%. The ‘Asset Plus Global’ fund also posted a 29.09% return during the same period, exceeding the BM (9.31%).

Chairman Kang expressed the opinion that the KOSPI will find a balance point between 2150 and 2250 in the future. Considering the long-term low interest rate environment, it could expand up to 2450, but in the long term, it is expected to fluctuate around an average of 2200. However, he forecasted that if the pension market shifts rapidly from defined benefit (DB) to defined contribution (DC) plans, the index band could rise further.

In conclusion, he emphasized, “Stocks are risky assets, but if you stay with great companies for a long time, even if you are afraid, you can recover everything within a year,” and added, “You can achieve good profits through long-term investment in active funds.”

Meanwhile, Asset Plus Asset Management introduced a non-face-to-face fund subscription system (MTS) through its app on the same day, allowing customers to purchase its funds. The company explained that it has more than doubled the internal staff responsible for MTS to enable investors to smoothly subscribe to funds remotely. Chairman Kang said, “For Asset Plus Asset Management, which sells directly, it was inconvenient and difficult for customers to come directly to the management company’s sales window to subscribe to funds,” and added, “Now that accounts can be opened via mobile, we will easily deliver information through the fund app.”

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