by Ryu Hyunseok
Published 27 Feb.2024 08:43(KST)
Updated 27 Feb.2024 13:42(KST)
Korea Investment Trust Management announced on the 27th that the Korea Investment Global AI & Semiconductor TOP10 Fund has maintained steady growth, achieving a return of over 48% since its inception at the end of March last year.
The Korea Investment Global AI & Semiconductor TOP10 Fund has recorded high returns recently, boosted by the strong stock performance following Nvidia's earnings announcement. The Korea Investment Global AI & Semiconductor TOP10 Fund (H) (C-F Class) posted a return of 48.45% as of the 26th of this month, based on FnGuide data since inception. This outperformed the Nasdaq 100 Index (40.92%), a representative index of the technology stock market, during the same period. The return over the past six months is 25.29%.
The fund holds a 10.02% weighting in Nvidia, the highest among domestic public funds. Since the earnings announcement, Nvidia's stock price has continued to rise daily, dispelling investors' doubts with strong results and significantly amplifying expectations for future stock price gains. Given the fund's high weighting in Nvidia, it is expected to benefit from the stock price appreciation.
Additionally, the Korea Investment Global AI & Semiconductor TOP10 Fund concentrates about 75% of its holdings in the top 10 stocks, making it the only public fund that invests exclusively in companies within the artificial intelligence (AI) sector. AI and semiconductors are representative winner-takes-all industries, and investing in monopolistic companies is key to enhancing investment returns.
The fund operates by including leading companies in each sector. Besides Nvidia, the top holdings currently include ▲TSMC ▲Amazon ▲Broadcom ▲ASML ▲Microsoft. In particular, Korea Investment Trust Management utilizes its proprietary analysis system to examine companies' unique moat factors such as market share, maximizing operational efficiency and identifying market-leading investment targets.
Hyuntae Kim, Head of Global Quantitative Management at Korea Investment Trust Management, explained, “Nvidia is building an AI software ecosystem based on its monopoly technology in AI semiconductors,” adding, “Focused investment in big tech companies that can win the AI competition requiring semiconductor companies within Nvidia’s value chain, as well as massive capital and data, is very important.”
The Korea Investment Global AI & Semiconductor TOP10 Fund offers a currency-hedged (H) type to reduce risks from exchange rate fluctuations, a currency-exposed (UH) type that exposes assets to exchange rate changes, and a USD type that invests in US dollars. Subscriptions are available through Korea Investment & Securities, NH Investment & Securities, Samsung Life Insurance, NongHyup Bank, KB Securities, Hanwha Investment & Securities, Samsung Fire & Marine Insurance, and Korea Post Securities.
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