Truston Asset Management Launches 'Truston ESG Level-Up Fund'

[Asia Economy Reporter Minji Lee] Truston Asset Management announced on the 27th that it will launch the ‘Truston ESG Level-Up Securities Fund,’ which employs a new concept of ESG management strategy.

Unlike existing ESG funds that relied on excluding stocks with low scores based on ESG evaluation indices from external rating agencies (native screening), this fund is characterized by actively integrating shareholder activities with ESG in its management.

Hwang Seong-taek, CEO of Truston Asset Management

This fund is also notable for not relying solely on ESG evaluations from external advisory institutions but utilizing Truston Asset Management’s proprietary ESG Scoring. To this end, Truston has been striving to build its own ESG evaluation data since 2019 by conducting ESG assessments during company visits. Furthermore, Truston Asset Management was the first independent asset management company in Korea to introduce the Stewardship Code in 2017 and has engaged in various shareholder activities, starting with shareholder actions at Mando in 2013 when the concept was still unfamiliar, and recently demanding dividend increases from Daelim Industrial.

Truston’s proprietary ESG ratings are divided into four categories: Leader, Momentum, Lagard A, and Lagard B. This fund invests more than 50% in the Momentum and Lagard A categories, where ESG improvements can lead to increases in corporate value. The company explains that when this fund is invested alongside sector exchange-traded funds (ETFs) or large-cap growth funds, it can expect style diversification effects.

Hwang Seong-taek, CEO of Truston Asset Management, stated, “We will select and invest in companies where ESG improvements can lead to fundamental improvements, and if a company’s own ESG efforts are insufficient, we will pursue a strategy of active shareholder engagement to create a ‘win-win’ for both the company and shareholders. We will incorporate Truston’s experience as the most active shareholder in Korea and our unique philosophy on ESG into this fund,” he emphasized.

This fund will be available for subscription from January 28 through KB Securities, Korea Investment & Securities, Hyundai Motor Securities, and POS Securities, and the company plans to expand the number of distributors in the future.

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