Korea Investment Management announced on the 7th that it will launch a public hedge fund named 'Korea Investment UBP Campbell Smart Alpha.'
This fund is a fund of funds that invests over 60% in 'U Access (IRL) Campbell Absolute Return UCITS' (hereinafter referred to as the UBP fund) from global asset management company Union Bancaire Privée (UBP). The UBP fund, launched in 2020, invests in various asset classes such as stocks, bonds, and currency. Four strategies are utilized: momentum, system macro, short-term trading, and quant.
To enhance profitability and stability, the 'Smart Alpha' approach was also utilized. Most of the cash held is invested in money market funds (MMF) and short-term government bonds, which are considered risk-free assets, and cash outside of the investment in risk-free assets is used as margin for investing in financial derivatives.
Since the UBP fund was launched in June 2020, the cumulative return as of last month was 60.82%, and the annualized rate was 10.15%.
Investors can subscribe to this fund through Korea Investment & Securities and Yuanta Securities Korea, with plans to expand sales partners in the future. This fund was launched in three types: currency hedged (H), currency exposed (UH), and U.S. dollar (USD).
Director General Kim Tae-hyun of Korea Investment Management's Global Alternative Investment Department 2 said, 'We decided to launch a public hedge fund to provide suitable products for investors at this point, given the various risk factors such as exchange rates, interest rates, and tariffs.' He noted that most existing hedge funds had high minimum investment amounts and were in the form of private equity funds, but this product enhances accessibility.