CEO Bae Jae-kyu Reiterates the Importance of Long-term Investment for Future Growth

Korea Investment Management Launches New Products to Meet Monthly Dividend Investor Demand
Earn Profits and Receive Dividends with the 'ACE U.S. Dividend Quality' Series

Bae Jae-kyu, CEO of Korea Investment Management, once again emphasized the importance of long-term investment for future growth. Since taking office as CEO of Korea Investment Management in 2022, Bae has consistently argued that "one should invest in U.S. tech companies."

On May 13, at the 'ACE U.S. Dividend Quality' ETF (Exchange Traded Fund) Series Listing Commemorative Seminar held at Conrad Seoul in Yeouido, Seoul, Bae stated, "Tech companies are not just a temporary trend," and added, "We have moved from an era where manufacturing led the world to a tech-driven era."

He continued, "As we live in the digital age, we conduct our daily lives through major applications," emphasizing, "All the apps we use frequently are owned by big tech companies."

Bae explained, "Just because you develop important technology does not mean you can make money," and added, "To generate profits from technology that leads changes in the world, you need large-scale capital." He further noted, "There are not many companies that can invest trillions of won," and said, "The big tech companies leading the world are unlikely to change anytime soon."

Although the stock prices of big tech companies have undergone corrections this year, Bae believes that their growth will not stop in the long term. He also expects that these companies will continue to steadily increase their dividend payouts.

This is why Korea Investment Management confidently launched the following products: ▲ACE U.S. Dividend Quality ETF ▲ACE U.S. Dividend Quality Bond Mix 50 ETF ▲ACE U.S. Dividend Quality + Covered Call Active ETF.

Korea Investment Management confirmed that there is strong demand for ETFs whose net asset value (NAV) grows and which can increase dividends over the long term, and has worked to develop products to meet this demand. Nam Yongsoo, Head of ETF Management at Korea Investment Management, said, "After the revision of the foreign withholding tax (foreign tax) system, domestic monthly dividend investors are disappointed that the compounding effect of U.S. high-dividend ETFs within tax-advantaged accounts has diminished," and added, "There is a need for new products that cater to investor demand for higher total returns from long-term investment and for generating cash flow through monthly distributions."

To launch the ACE U.S. Dividend Quality series, Korea Investment Management signed a business agreement with WisdomTree and developed new indices. The ACE U.S. Dividend Quality series is an ETF that invests in U.S. dividend growth stocks, based on the 'WisdomTree U.S. Quality Dividend Growth (DGRW) ETF' in the United States.

Jeremy Schwartz, Chief Investment Officer (CIO) of WisdomTree, who attended the seminar, began by saying, "Unlike during the dot-com bubble of the 2000s, today's tech stocks are reasonably priced, reflecting their growth rates."

He introduced DGRW as "a product that comprehensively considers not only the value investing motto of Warren Buffett, Chairman of Berkshire Hathaway, but also dividend growth, earnings growth, return on equity (ROE), and return on assets (ROA)." He explained, "DGRW has the flexibility to reflect both dividend and overall business growth, rather than just a track record of over 10 years of dividends," and added, "This is why it can include high-quality tech growth stocks that have only recently started paying dividends."

He further stated, "The DGRW strategy, which reflects both a company's growth potential and dividend growth, is a way to secure not only higher total returns but also defensive strength during market downturns," and added, "In fact, DGRW demonstrated excellent defensive performance during the downturns in 2022 and earlier this year."

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