"Profiting Even in a Down Market"…Korea Investment Management's 'Active EMP Fund' Draws Attention

[Asia Economy Reporter Hwang Yoon-joo] Korea Investment Trust Management's active EMP (ETF Managed Portfolio) funds have attracted attention by ranking first in returns despite the market downturn since the beginning of the year.

Korea Investment Trust Management announced on the 29th that the year-to-date returns of two active EMP funds, ‘Korea Investment EMP Global Asset Allocation Fund’ and ‘Korea Investment Dynamic Hedge Income Fund,’ ranked first in their respective categories.

According to FnGuide, as of the 28th, the year-to-date return of the ‘Korea Investment EMP Global Asset Allocation Fund (Bond Mixed - Fund of Funds) (C-Re)’ was 4.48%, the highest among domestic public EMP funds.

The ‘Korea Investment Dynamic Hedge Income Fund (Bond - Fund of Funds) (A)’ recorded a year-to-date return of 7.59%, the highest among domestic public income funds.

EMP funds are funds that manage portfolios by investing more than 50% of total assets in exchange-traded funds (ETFs). Because they include ETFs, which have the characteristic of diversified investment across multiple stocks, in their portfolios, they are called ultra-diversified funds that maximize diversification effects.

The ‘Korea Investment EMP Global Asset Allocation Fund’ invests in ETFs and various assets such as stocks and bonds in global markets including the US, Europe, Japan, and emerging countries. A major feature of this fund is selecting core strategic themes for excess performance and focusing investments accordingly. For example, this year, the fund selected interest rate hikes as a core strategic theme and managed flexibly, which led to its favorable performance.

The ‘Korea Investment Dynamic Hedge Income Fund’ seeks stable returns by diversifying investments in global bond ETFs. It regularly earns income from interest generated by bonds while using a dynamic hedging strategy for risk management and excess returns. The dynamic hedging strategy is a method that actively responds by predicting interest rate changes in advance through domestic and international bonds and bond-related leveraged and inverse products.

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