Eugene Asset Management Launches 'Eugene Champion Plain Vanilla OCIO Fund'

[Asia Economy Reporter Lee Jung-yoon] Eugene Asset Management announced on the 2nd that it has launched the 'Eugene Champion Plain Vanilla OCIO Fund,' which applies the Outsourced Chief Investment Officer (OCIO) asset management method to the operation of retirement pension reserves.

The 'Eugene Champion Plain Vanilla OCIO (Outsourced Chief Investment Officer) Fund,' which can be used for managing retirement pension reserves, is a Target Return Fund (TRF) that flexibly readjusts the portfolio periodically to achieve a predetermined target return. TRFs are recognized in the market as suitable for DB-type retirement pensions and default options.

This fund is managed with the goal of efficient retirement pension asset management by utilizing a specialized global asset allocation strategy. To achieve the target return, Eugene Asset Management signed an MOU on the 19th of last month with Plain Vanilla Investment Advisory and Craft Technologies, an AI solution provider, to establish the OCIO fund.

Eugene Asset Management, Plain Vanilla, and Craft will operate the retirement pension reserves stably and systematically through role-sharing in their areas of expertise. Eugene Asset Management makes the final investment decisions based on strategic and tactical asset allocation using Craft’s AI engine and tactical asset allocation and model portfolio combinations provided by Plain Vanilla.

The public EMP fund advised by Plain Vanilla recorded the largest market setting amount of 600 billion KRW in net assets as of the 12th of last month, demonstrating its recognized management capability in the market. Craft provides AI asset management and asset management solutions to numerous domestic and international financial companies based on its proprietary AI technology.

Oh Chun-sik, Head of Marketing at Eugene Asset Management, stated, "If the return on a company’s DB-type retirement pension reserves does not keep up with wage increases, the company will incur additional reserve burdens. Considering that the average wage increase rate in Korea over the past 10 years has been 3.7%, we plan to operate the fund with a minimum target return of around 4% per year."

He added, "As a TRF presenting a target return, the Eugene OCIO Fund will collaborate by maximizing the expertise of the three companies to realize stable operational performance of DB-type funds and provide customers with a systematic and stable retirement pension investment tool."

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