Hantoo Asset Management Ranks 1st and 2nd in Domestic OCIO Fund Product Returns

Two Types of Large Fund Management Methods: In-House Total Solution Approach
Global Asset Allocation for Long-Term Investment

Two external delegated investment management (OCIO) funds managed by Korea Investment Management ranked first and second in one-year returns among 33 domestic OCIO funds.

On the 23rd, Korea Investment Management announced, “According to FnGuide as of the previous day, the Korea Investment OCIO-DO Discretionary Income Fund (C-Re Class) and Korea Investment OCIO Discretionary Fund (C-F Class) recorded one-year returns of 8.39% and 7.73%, respectively, ranking first and second among domestic OCIO funds.” This performance exceeds the domestic OCIO funds' one-year average return of 4.57%.

The 3-month, 6-month, and year-to-date returns also surpassed the averages. The Korea Investment OCIO-DO Discretionary Income Fund (C-Re Class) posted returns of 1.80%, 2.98%, and 12.41%, while the Korea Investment OCIO Discretionary Fund (C-F Class) recorded 2.76%, 2.00%, and 8.36%, all exceeding the overall OCIO averages for each period (0.76%, 1.15%, 5.91%).

OCIO refers to an outsourcing method where external experts act as Chief Investment Officers (CIOs). Asset management companies primarily manage assets entrusted by pension funds, university endowments, and others in a professional manner. OCIO funds implement these OCIO services as public funds, integrating them into defined benefit (DB) pension fund asset management products.

The Korea Investment OCIO-DO Discretionary Income Fund, introduced last year, implemented global multi-asset allocation including global equities, bonds, and alternative assets, suitable for default options. Defined contribution (DC) pension plans are also designed to systematically manage asset allocation, risk management, and performance analysis by utilizing the OCIO process, which is the management method of large domestic and international funds.

The Korea Investment OCIO Discretionary Fund is provided as a total solution by Korea Investment Management. Its investment objective is set based on the ‘Retirement Liability Index’ developed domestically for the first time by Korea Investment Management. The Retirement Liability Index estimates the five-year average growth rate of retirement benefit liabilities of Korean companies. It combines an ‘Income Seeking Portfolio (ISP)’ focused on stable income generation and interest rate risk management and a ‘Return Seeking Portfolio (RSP)’ aimed at medium- to long-term capital gains and liability growth management, each weighted at 50%, to respond to economic cycles and market changes.

Kang Seong-su, Head of Solution Strategy at Korea Investment Management, said, “The Korea Investment OCIO Discretionary Fund not only updates the Retirement Liability Index annually to reflect changes in market conditions over long-term investments in its investment objectives but also achieves excellent performance by investing in a mix of global equities and domestic bonds.” He added, “To prepare for the mandatory introduction of investment policy statements and investment committees for companies with over 300 employees, implemented last year, we also provide services similar to those for large funds, including mobile-based performance reporting, investment education, and Investment Policy Statement (IIPS).”

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