Samsung Asset Management Launches 'Samsung Global Chat AI Fund'

Focused Investment in the Global Generative Artificial Intelligence (AI) Industry
Simultaneous Launch of Unhedged (UH) and Hedged (H) Types

Samsung Asset Management announced on the 17th that it will launch the ‘Samsung Global Chat AI Fund,’ which focuses on concentrated investment in global generative artificial intelligence (Chat AI) software stocks.

The ‘Samsung Global Chat AI Fund’ is the first domestic fund to focus exclusively on the global generative artificial intelligence-related industry, centered on generative AI service companies that have recently gained attention led by the popularity of ChatGPT, including AI platforms and AI implementation technology companies worldwide.

This fund is significantly differentiated from existing AI funds in that it focuses intensively on software companies utilizing generative artificial intelligence. Unlike the typical investment pattern that concentrates on well-known AI-related big tech stocks, this fund selectively invests in rapidly growing generative AI companies, offering a unique approach.

Generative artificial intelligence (Chat AI) refers to technology that creates new content tailored to user requests by utilizing existing content.

At the end of last year, OpenAI’s conversational AI service, ChatGPT, was released to the public, rapidly popularizing generative AI services. The adoption speed is also spreading more than 100 times faster on average compared to previous innovative technologies.

In particular, generative AI’s market potential and investment opportunities are rapidly increasing as it can be combined with various fields beyond creative areas such as writing, art, and research, including the existing software industry.

Existing AI funds have invested mainly in three sectors: big tech companies utilizing AI, the semiconductor industry enabling AI technology, and the robotics industry using AI.

Therefore, the top holdings of existing AI funds are mostly large AI-related stocks (Microsoft, Tesla, Apple, Amazon, Google, etc.) and semiconductor-related stocks (TSMC, ASML, Samsung Electronics, Nvidia, etc.).

On the other hand, the Samsung Global Chat AI Fund constructs a relatively detailed portfolio by classifying investments into three categories: ‘generative AI (AI) services’ such as software and digital content services, ‘AI platforms’ such as search platforms, and ‘AI implementation technologies’ such as semiconductors and big data solutions, focusing on stocks directly linked to the expansion of the generative AI industry.

In particular, this fund selects and invests in companies directly connected to AI industry growth, such as those in software, media/content, healthcare, and consumer goods sectors, where AI provides outputs based on user inputs.

Key stocks expected to be included are ▲Salesforce ▲Manhattan Associates ▲Duolingo ▲Teradata ▲Nvidia ▲Microsoft ▲Google.

The Samsung Global Chat AI Fund offers both a currency-hedged (H) type to hedge risks from exchange rate fluctuations and a currency-exposed (UH) type that exposes assets to exchange rate changes, allowing investors to choose based on their exchange rate outlook. It is available for subscription through Samsung Securities and Kyobo Securities, with sales channels expected to expand gradually.

Jang Hyun-jun, the manager in charge of operating this fund at Samsung Asset Management, stated, “The Samsung Global Chat AI Fund is constructed with a portfolio focused on stocks that can directly benefit from the expansion of the generative AI industry, making it significantly different in stock investment proportions compared to existing AI funds. Since the generative AI market is a rapidly and broadly emerging growth industry, the selection and continuous management of target companies will determine the fund’s future performance. Therefore, we will fully leverage Samsung Asset Management’s experience and know-how, which has launched and managed various funds reflecting the latest popular trends.”

Meanwhile, through the launch of this fund, Samsung Asset Management has newly strengthened its AI product lineup across all sectors by adding generative AI to existing funds such as ▲Samsung Global Semiconductor Fund, ▲Samsung Global Metaverse Fund, and ▲Samsung Pickter Robotics Fund, which cover the semiconductor, metaverse, and robotics industries, thereby providing diverse investment opportunities across the entire AI field.

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