[2021 Asia Fund Awards] Focused Investment in Energy Companies... Profits Soar with Eco-Friendly Trend

Best Fund ESG - Kiwoom Investment Asset Management

Seonghun Kim, CEO of Kiwoom Asset Management

In 2021, Kiwoom Investment Asset Management's 'Kiwoom Future Energy Securities Investment Trust No. 1' was selected as the Best Fund in the ESG (Environmental, Social, and Governance) category at the Asia Economy Fund Awards.

This fund invests in stocks of companies engaged in eco-friendly energy industries such as solar power, wind power, and hydrogen fuel cells, tracking the S&P Global Clean Energy Index. By concentrating on fewer than 40 eco-friendly energy-related stocks, it has recently achieved excellent returns, and thanks to proactive green policies in major countries like the United States, Europe, and China, high returns are expected to continue in the future.

Focusing on eco-friendly energy results in high expected returns but also higher volatility compared to general equity funds. The management team primarily utilizes a quantitative management model designed for overseas stock investments to construct the portfolio. Additionally, in-depth and qualitative analyses of target stocks are conducted for final inclusion, exclusion, and weight adjustments. Currency hedging is executed at around 70%. The returns, based on the master fund (before fees), recorded 94.7% for one year, 139.7% for two years, and 140.7% for three years.

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