KCGI Asset Management Launches Global EMP Fund with 10 Billion Won Inflow

KCGI Asset Management launched the 'KCGI Global Active EMP Fund [Stock-Rebalancing]' on the 27th, a portfolio investing in global stocks, sectors, and theme exchange-traded funds (ETFs). The fund employs a two-stage momentum strategy to select rising-trend assets amid heightened market volatility. On its first day, the fund attracted 10 billion won in inflows. The launch aligns with a global trend favoring systematic ETF selection over broad diversification, as the worldwide ETF market doubled from $9 trillion in 2022 to $20 trillion in the first quarter.

KCGI Fund Applies Two-Stage Momentum Strategy

The fund uses a two-stage process to identify investment targets. In the first stage, individual ETF returns determine trend direction. In the second stage, medium- to long-term returns are ranked, and only representative assets from highly correlated ETF groups are included to avoid duplication and strengthen relative momentum. Portfolio managers review the investment universe for appropriateness and conduct periodic rebalancing to mitigate structural lag during sharp price swings, a characteristic limitation of momentum strategies.

KCGI Asset Management stated that the current global trend is not to hold many ETFs, but to systematically select ETFs with high upside potential and pursue excess returns. The firm plans to manage the fund with the goal of generating stable excess returns through rule-based ETF selection rather than simple ETF combinations.

Global ETF Market Doubles in Four Years

The global ETF market grew from $9 trillion in 2022 to $20 trillion in the first quarter, more than doubling in four years.

KCGI Asset Management Triples AUM Ahead of Third Anniversary

KCGI Asset Management's assets under management (AUM) have nearly tripled as the firm approaches its third anniversary next month following a recent name change. The company continues its steep growth trajectory.

FAQ

What is the KCGI Global Active EMP Fund?

The KCGI Global Active EMP Fund is a portfolio launched by KCGI Asset Management on the 27th that invests in global stocks, sectors, and theme ETFs using a two-stage momentum strategy to select rising-trend assets.

How much capital did the KCGI fund attract on its first day?

The fund attracted 10 billion won in inflows on its first day of operation.

How has the global ETF market grown in recent years?

The global ETF market grew from $9 trillion in 2022 to $20 trillion in the first quarter, more than doubling in four years.