Average Cumulative Return of Discretionary ISA at End of November 31%... Up 0.58%P from Previous Month

Profitability Rebounds Amid Omicron Anxiety Relief
Tax Reform Effects Push Intermediary ISA Subscribers Beyond 2 Million

[Asia Economy Reporter Minji Lee] The Korea Financial Investment Association announced on the 30th that the cumulative return of discretionary Individual Savings Account (ISA) model portfolios (MP) as of the end of October this year was recorded at an average of 30.47%. This is an increase of 0.58 percentage points from the cumulative return of 29.95% at the end of September.

An official from the Korea Financial Investment Association said, "The global stock market showed instability due to the Federal Reserve's early interest rate hike concerns and the emergence of Omicron, but then showed some rebound as concerns over Omicron eased."

By type, the returns were 56.42% for ultra-high risk, 43.42% for high risk, 26.75% for medium risk, 14.45% for low risk, and 7.82% for ultra-low risk. Since launch, out of a total of 192 MPs, about 84%, or 162 MPs, recorded returns exceeding 10%.

The average cumulative return by company ranked Meritz Securities first with 44.64%. This was followed by KB Securities (39.15%), Kiwoom Securities (38.96%), and NH Investment & Securities (38.26%). Among individual MPs, Kiwoom Securities' Basic Investment Type (ultra-high risk) topped the overall returns with a cumulative return of 124.82%.

Looking at the top cumulative returns by type, in the high-risk category, Hyundai Motor Securities' 'Income Pursuit Type A2 (Developed Countries Type)' MP achieved a 97.06% return since launch by investing 100% in overseas equity funds. In the medium-risk category, NH Investment & Securities' 'QV Neutral A' MP recorded a 40.3% return since launch with investments of 29.2% in overseas equity funds, 19% in domestic bond funds, and 16.2% in MMFs. In the low-risk category, Daishin Securities' 'Global Low-Risk Wrap' MP achieved a 23.66% return since launch with investments of 25.2% in overseas equity funds, 24.5% in overseas bond funds, and 23.9% in RP.

Meanwhile, as of the end of last month, the number of subscribers to brokerage-type ISAs reached 2.06 million, and the total number of ISA subscribers reached a record high of 3.14 million. Park Doo-sung, head of the Securities Support Division 2 at the Korea Financial Investment Association, said, "The increase in subscribers appears to be due to the widespread awareness among investors of the tax reform plan announced in July this year, which exempts domestic stock capital gains within ISAs from taxation." He added, "As the financial investment income tax will be introduced from 2023, the trend of smart investing aimed at tax savings is expected to continue next year as well."

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