South Korea’s NH-Amundi Asset Management Co. will launch a fund investing in local listed parts and materials companies likely to benefit from various state-led incentives and funding under the government will to localize the components supply chain after Korea’s high-tech companies became susceptible to trade barriers from Japan.
The new fund will devote 65 percent to Kospi members and the rest on Kosdaq, its manager said Monday. To ensure stable return, the fund will invest in global big names such as Samsung Electronics and SK Hynix on top of companies engaged in government-defined 100 strategic category.
The list of companies to be included in the fund will be announced on Wednesday when it is officially launched.
In the face of export embargo from Japan on which Korea has long relied for high-tech materials, the government announced it will go all-out to foster the materials, components and equipment segment to build up self-sufficiency in IT supply chain.
The asset management firm expects opportunities not only in the manufacturing industry but also in the financial sector from the new focus on components supply industry.
Chief executive Bae Young-hoon
NH-Amundi Asset Management also is planning to use half of its fund operation fees, 0.25 percent out of 0.5 percent, to arrange another fund to give scholarships to college students majoring in materials, components and equipment development.
“NH-Amundi as an asset manager will keep investing in Korean Inc. to help them move ahead despite unfavorable market conditions,” said its chief executive Bae Young-hoon.
But market observers question whether investors will put money in the fund out of patriotism.
By Park Eui-myung and Lee Ha-yeon
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]