KB Asset Management Launches Full-Scale Commercialization of Direct Indexing 'MYPORT'

Customers Can Easily Build Portfolios Themselves
Contract Signed with Kyobo Securities for Direct Indexing Engine Use
Currently Available on KB Securities' 'M-Able'
Direct Indexing Market Expected to Grow to 2,150 Trillion KRW by 2025

On the 1st, Park Bong-kwon, CEO of Kyobo Securities (left), and Lee Hyun-seung, CEO of KB Asset Management, are taking a photo after signing the supply contract for the direct indexing service 'MYPORT'.
[Photo by KB Asset Management]

KB Asset Management has begun the full-scale commercialization of its self-developed direct indexing engine, ‘MYPORT.’ On the 1st, KB Asset Management and Kyobo Securities signed a ‘MYPORT Engine Usage Agreement’ at a ceremony held at the Kyobo Securities headquarters.

By utilizing the MYPORT engine, which KB Asset Management started developing in September last year, customers can easily build and edit their portfolios themselves in line with the era of hyper-personalization. Direct indexing refers to the technology and service that constructs personalized investment indices reflecting individual preferences and investment objectives, and directly manages them at the individual stock level in the customer’s account.

Currently, this service is available on KB Securities’ mobile trading system (MTS) called ‘M-Able.’ With this agreement, Kyobo Securities’ MTS ‘Win.K’ will also offer direct indexing services, including domestic and international indices. The service will officially launch in the first half of next year after the completion of system development.

Lee Hyun-seung, CEO of KB Asset Management, said, “We are discussing expanding the use of MYPORT to various securities firms’ MTS starting with Kyobo Securities,” adding, “We will grow MYPORT beyond an algorithmic form into a platform business where users can receive highly advanced research materials and expert advice, leading the way in increasing the nation’s assets.”

In the United States, where direct indexing is already popularized, the established exchange-traded fund (ETF) market is rapidly shifting toward personalized products. According to global consulting firm Oliver Wyman, the direct indexing market size in the U.S. was KRW 185 trillion in 2018, KRW 385 trillion in 2019, KRW 500 trillion in 2020, and is expected to grow to KRW 2,150 trillion by 2025.

In Korea, some securities firms and asset management companies have already rushed to develop direct indexing services. KB Asset Management, which has already started commercializing the service, is considered a frontrunner. Kim Hong-gon, Head of AI Quant & DI Operations at KB Asset Management, stated, “MYPORT is an engine developed by internalizing the operational experience and capabilities of our own fund managers, including PhDs in artificial intelligence (AI) investment engineering and financial engineering,” and added, “With the implementation of the financial investment income tax in 2025, we expect the base to expand centered on individual investors.”

Meanwhile, KB Asset Management has been continuously introducing differentiated services from other financial companies based on over 30 years of experience in developing various products and investments in AI and big data-related technologies.

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