NH-Amundi, Ollbaleun Jigu OCIO Asset Allocation Fund Surpasses 200 Billion KRW in Net Assets

NH-Amundi Asset Management announced on the 1st that the Olbareun Jigu OCIO Asset Allocation Fund has surpassed 200 billion KRW in net assets.

The Olbareun Jigu OCIO Asset Allocation Fund showed strong growth this year, following its breakthrough of 100 billion KRW in net assets in January 2023, less than a year after its launch.

As of the 30th of last month, the total net assets of the Olbareun Jigu OCIO Asset Allocation Fund stood at 203.1 billion KRW, making it the largest OCIO public offering fund. According to Zeroin, as of January 30th, the fund's returns over 3 months, 6 months, and 1 year were 10.19%, 4.4%, and 9.81%, respectively.

OCIO stands for Outsourced Chief Investment Officer, a service where external experts are entrusted with managing assets of pension funds and large corporations efficiently and systematically. Through OCIO funds, which implement OCIO services as public offering funds, general investors can pursue pension fund-level stability and profitability in asset management regardless of the size of their savings.

NH-Amundi Asset Management launched the Olbareun Jigu OCIO Asset Allocation Fund, Korea’s first ESG (Environmental, Social, Governance)-based OCIO fund, on March 28, 2022. This fund applies ESG processes to investment strategies such as asset allocation, scenario analysis, and fund selection. It invests in three master funds?equities, bonds, and alternatives?and flexibly adjusts asset weights according to market conditions. It is suitable for general investors aiming to secure target funds with mid- to long-term investments targeting annual returns above interest rates, as well as companies seeking stable management.

The Olbareun Jigu OCIO Asset Allocation Fund is optimized for managing corporate retirement pension DB reserves, operating with consideration of the characteristics of retirement pension liabilities. Established as a master-feeder structure, it is also advantageous as a private fund that can be easily set up to meet diverse corporate needs.

Kim Kwang-joo, Vice President and Head of Marketing at NH-Amundi Asset Management, said, “OCIO funds may be suitable for funds that need to be managed with goals over the mid- to long-term, such as retirement pensions,” adding, “If you want to manage your retirement pension with systematic management principles and risk control like pension funds, the Olbareun Jigu OCIO Asset Allocation Fund could be a good choice.”

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