Korea Investment Global AI & Semiconductor TOP10 Fund, Ranked No.1 Among Similar Funds

Largest Scale with Operating Assets of 16.8 Billion Won

Korea Investment Trust Management announced on the 17th that the 'Korea Investment Global AI & Semiconductor TOP10 Fund,' established in March last year, has grown to become the largest fund of its type within approximately 8 months of its inception.

The Korea Investment Global AI & Semiconductor TOP10 Fund focuses its investments on 10 leading companies driving growth in the artificial intelligence (AI) industry. As of the previous day, the fund's assets under management amounted to 16.8 billion KRW, making it the largest overseas equity AI-themed fund (excluding ETFs). This achievement was reached in about 8 months since its establishment. Including the unhedged (UH) version, which is exposed to currency fluctuations, and the USD-denominated version, the fund size totals 20 billion KRW, with net assets under management, including performance, amounting to 25.6 billion KRW.

The most significant difference of the Korea Investment Global AI & Semiconductor TOP10 Fund lies in its portfolio composition. The fund allocates more than 80% of its holdings to big tech stocks that are expected to benefit the most in the generative AI era. Considering that the average big tech stock allocation in similar public funds is around 30-40%, this allocation is relatively high. Many of the holdings are companies with monopolistic positions in the market. The top holdings currently include ▲NVIDIA ▲Broadcom ▲Microsoft ▲Apple ▲Amazon ▲Tesla ▲Google ▲TSMC ▲ASML, among others.

Korea Investment Trust Management developed its own analysis system to select investment targets for the fund. This system creates an investment universe of about 100 companies by considering global research and corporate documents in the AI and semiconductor sectors. Based on this, portfolio managers construct a Core portfolio and a Strategy portfolio. The Core portfolio includes five representative companies each from the AI and semiconductor industries, selected based on market share and possession of monopolistic platforms within the universe. The Strategy portfolio contains companies that are not currently market leaders but have the potential to become representative stocks due to industry changes.

The selection of investment targets has translated into strong performance. Since their inception in March and April last year, the Korea Investment Global AI & Semiconductor TOP10 Fund Hedge type (C-F class) and Unhedged type (C-Pe class) have posted returns of 31.66% and 40.74%, respectively, outperforming the Nasdaq Composite Index returns (26.07%?26.98%) over the same period. The funds also showed excellent recent 6-month returns of 4.34% and 10.21%, respectively.

Kim Hyuntae, head of the Global Quantitative Management Department and fund manager, explained, "The Korea Investment Global AI & Semiconductor TOP10 Fund maintains an appropriate level of volatility through active risk management using a quant-based model." He added, "As the AI industry is expected to continue growing this year, we will pursue differentiated management strategies by identifying companies that improve cost efficiency through AI and selecting companies expanding their market share."

Meanwhile, the Korea Investment Global AI & Semiconductor TOP10 Fund is a performance dividend-type product, and past returns do not guarantee future results. Principal loss may occur depending on management outcomes.

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