KCGI Asset Management announced that it will launch the "KCGI Fidelity U.S. AI Tech Target Conversion" fund and start recruiting on the 2nd.
This product mainly targets U.S. AI Tech stocks discovered using Fidelity's global research capabilities. It is the first product to be released since the strategic alliance between the two companies in early January.
It is a bond-mixed fund consisting of less than 50% of overseas stocks and more than 50% of bonds, and if it achieves a target rate of return of 7%, it will be converted to a bond type that invests in domestic bonds. In preparation for exchange rate fluctuations that may occur by investing in overseas stocks, dollar assets will be exchange-hedged at a certain level.
Fidelity is a global operator that operates $1.86 trillion worldwide.
It is famous for conducting bottom-up research that selects investment targets by prioritizing fundamental analysis such as interviews with corporate management and supply chain analysis.
The fund will select more than 50 highly confident stocks among the U.S. tech universe carefully selected by Fidelity and provide a "model portfolio" consisting of 20 to 40 elite stocks. KCGI Asset Management will be operated in a double-check structure that selects investment stocks once more, excluding companies with low market capitalization, liquidity, and trading volume among the model portfolio stocks. In the event of a sudden change in the market, the company will manage risks based on KCGI Asset Management's global quantitative model.
When the target rate of return reaches 7%, it is converted to automatic bond type. It is suitable for conservative or medium-risk investors who want to keep their returns. It is a strategy suitable for reducing psychological bias that may occur when investors directly invest in indexes or ETFs.
KCGI Asset Management said, "The outlook for the AI market is bright as the pace of development of software companies that use generative AI, robots, and AI is steep and market demand is increasing significantly."
Kang Young-soo, head of KCGI Asset Management's global management division, said, "The importance of research is growing when investing in AI companies, and we expect investments in a way that selects stocks based on Fidelity's global research to bring better investment results."
KCGI Asset Management is also pursuing additional alliance products with Fidelity following this fund.
The fund's recruitment period is from the 2nd to the 13th, and can be joined by Woori Bank, Shinhan Bank, Busan Bank, NH Securities, Meritz Securities, Mirae Asset Securities, Samsung Securities, Shinhan Securities, Hana Securities, Hyundai Motor Securities, and KCGI Asset Management. The set date is the 13th.
The investment grade is grade 4 (normal risk), with 1% of pre-payment fees and 0.650% of total remuneration based on A class. The operating period may vary depending on whether or not the target rate of return is reached, and if the stock price falls, the achievement of the target may be delayed or principal loss may occur.
