Hantoo Asset Management, Korea Investment Global AI & Semiconductor TOP10 Series Grows 5x Since Early This Year
Korea Investment Trust Management announced on the 19th that the Korea Investment Global AI & Semiconductor TOP10 Fund series has grown more than fivefold since the beginning of the year. The series consists of a currency-hedged type (H), a currency-exposed type (UH), and a US dollar type (USD).
As of the 16th, the Korea Investment Global AI & Semiconductor TOP10 Fund series has assets under management of 145.1 billion KRW. This represents a 478.09% growth in eight months from 25.1 billion KRW at the end of last year. Compared to the overseas information technology (IT) sector investment funds, which are the benchmark group during the same period, the fund’s growth is remarkable. The overseas IT sector fund market increased by 94.41%, from 2.199 trillion KRW at the end of last year to 4.2751 trillion KRW.
When expanded to overseas equity public funds, the fund’s performance stands out even more. While overseas equity public funds increased their assets from 29.3982 trillion KRW to 47.3338 trillion KRW, a 61.01% rise, this fund’s growth far exceeds the market average.
The rapid inflow of funds into the Korea Investment Global AI & Semiconductor TOP10 Fund series is attributed to its excellent performance and sustained investor interest in the industry.
The fund series’ year-to-date return is 28.90%, significantly outperforming the average return of all overseas equity funds (8.60%) and the average return of overseas IT sector funds (17.14%). Among overseas IT sector funds, it has the highest return (excluding exchange-traded funds (ETFs)). The recent 3-month, 6-month, and since-inception average returns of the series are 7.42%, 15.88%, and 47.88%, respectively. These figures also greatly surpass the recent 3-month (5.12%) and 6-month (9.55%) returns of the Nasdaq 100 index, a global technology stock-focused index.
The Korea Investment Global AI & Semiconductor TOP10 Fund series was first launched in April last year and is characterized by concentrated investment in the top 10 leading companies in the domestic and international artificial intelligence (AI) and semiconductor industries. As of the 8th of this month, the currency-hedged (H) A-class portfolio includes △Microsoft (8.85%) △Meta Platforms (8.76%) △NVIDIA (8.48%) △Apple (8.30%) △TSMC (8.20%) △ARM (4.59%), among others.
Kim Hyun-tae, head of the Global Quantitative Management Department at Korea Investment Trust Management and the fund manager, stated, “Big tech companies proved through their Q2 earnings announcements that AI growth will continue, centered on large platform companies applying AI.” He added, “In particular, Meta Platforms exceeded market expectations in Q2 sales, demonstrating that despite massive AI semiconductor investment costs, performance could be significantly improved by utilizing AI.”
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He continued, “There had been concerns about a recession affecting AI and semiconductor investments for some time, but recent adjustments have mostly reflected those concerns. The current macro environment, with easing inflation, expected interest rate cuts, and solid demand, appears very different from past downturn market conditions.”
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