Kiwoom Global Semiconductor Target Conversion Fund Surpasses 100 Billion KRW in Fundraising

Kiwoom Asset Management announced on the 8th that the subscription amount for the ‘Kiwoom Global Semiconductor Smart Investor Target Conversion Securities Investment Trust [Mixed - Fund of Funds]’ Series 1 and 2, which invests in a global semiconductor ETF using a dollar-cost averaging strategy, has surpassed 100 billion KRW.

The fund is a unit-type product sold only for a limited period, and Series 1 and 2 each attracted 51.3 billion KRW and 59.8 billion KRW in funds within just one week.

Kiwoom Asset Management evaluated, "It appears that investor response was driven by expectations for the semiconductor industry amid the sharp rise of the U.S. semiconductor company Nvidia."

It met the needs of customers who want to access the recently rising semiconductor market but find selecting individual stocks burdensome or have concerns about investment timing.

It was also analyzed that the fact the fund is managed with a smart investor strategy that conducts rule-based dollar-cost averaging according to market price changes had a positive effect. When the fund is established, assets are not purchased all at once but are gradually acquired based on price movements, progressively buying the global semiconductor ETF. The strategy buys less (4%) when the market rises and more (5%) when the market falls, allowing investors to benefit from diversified purchase timing similar to investing in a savings-type fund even with a single transaction.

The Series 1 fund, established on January 30, achieved a 5% return (A Class basis) on March 5, and the first rebalancing was conducted about a month after the fund’s establishment. At initial setup, semiconductor equity ETFs are purchased at about 30% of total assets, and when the rebalancing return of 5% (A Class basis) is achieved, the proportion of semiconductor equity ETFs, which has gradually increased, is lowered back to around 30%. Ultimately, when the target return of 10% (A Class basis) is reached, the fund automatically converts to a (domestic) bond fund of funds to preserve returns.

A Kiwoom Asset Management official said, "Some express concerns about a peak due to the recent soaring semiconductor stocks," adding, "However, the investment attractiveness remains high from a mid- to long-term perspective." He continued, "Because it is managed with a dollar-cost averaging strategy, investors can efficiently invest in the global semiconductor market without worrying about timing purchases, sales, or profit realization."

Kiwoom Asset Management will also launch a public additional subscription product with the same strategy within the first half of this year, allowing additional payments at any time without subscription period restrictions.

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