KCGI-Fidelity Hanmi AI Tech Fund Launched...Selective Investment in Core AI Companies

Second Fund Launched Following Partnership with Fidelity

KCGI Asset Management announced on the 21st that it will launch the "KCGI-Fidelity Hanmi AI Tech Fund [Equity]." This is the second fund introduced following the strategic partnership agreement signed in January between KCGI Asset Management and global asset manager Fidelity.

This fund will focus on investing in key AI industry companies in Korea and the United States, which are regarded as next-generation growth drivers. Initially, Fidelity will provide an advisory portfolio utilizing its research network, and U.S. AI companies will be selected through KCGI’s verification process. Subsequently, KCGI’s own management process will be used to select and include Korean AI companies. The strategy is to invest in companies with differentiated competitiveness in the global AI value chain by combining the strengths of both firms, thereby generating excess returns.

This is an open-ended, additional-type equity fund with a risk rating of grade 2 (high risk), allowing for mid-term redemption and additional subscriptions. No separate currency hedging is applied, and there is no redemption fee. The total fee is 1.11% for the Ae class (with an upfront fee up to 0.5%). Subscriptions are available from today through KCGI Asset Management and other channels.

The fund’s U.S. portfolio will be centered around companies leading innovation in software, semiconductors, networks, and devices. For Korea, the portfolio will include companies in areas such as memory semiconductors (including HBM, high bandwidth memory), ultra-high voltage transformers, power equipment, and robotic components—manufacturing sectors that complement the weaknesses of U.S. companies. By simultaneously investing in the U.S.'s “soft power,” which leads the global AI ecosystem, and Korea’s “manufacturing sector,” the fund aims to maximize synergies and diversify risks.

The plan is also to actively leverage Fidelity’s global research capabilities. Given the high volatility of the AI market and the polarization by stock performance and growth, the fund will employ an active strategy: instead of mechanically tracking an index, Fidelity’s managers will select only 20 to 40 stocks from a universe of 150 tech companies. For Korean equities, KCGI Asset Management’s own active management process will be applied.

A KCGI Asset Management official stated, “Amid the structural transformation driven by AI, we will swiftly identify and focus investment on winning companies with visible results,” adding, “By combining Fidelity’s global research capabilities with our domestic management expertise, we aim to pursue additional returns through thorough stock selection across the entire AI value chain.”

Meanwhile, to commemorate the fund’s launch, KCGI Asset Management will hold the “Hanmi AI Tech Puzzle Challenge” event on its website. A total of 115 winners will be selected by drawing to receive gifticons and gift certificates, among other prizes.

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