Park Jin-ho, CIO and Head of Equity Investment at NH-Amundi Asset Management, discussed the Pilseung Korea Fund's investment strategy in a recent interview with Money Today, attributing the fund's near-800% cumulative return since August 2019 to preemptive positioning in AI beneficiaries including Samsung Electronics and SK Hynix. The fund's assets under management surpassed 2 trillion KRW early last month, with an IT sector allocation of 80-90% and top holdings as of the 5th of last month comprising Samsung Electronics at 29.34% and SK Hynix at 19.68%. Park cited the fund's focus on companies with direct exposure to the AI investment cycle and their value chain partners as the primary driver of performance. The fund invests in Korean firms with global competitiveness in semiconductors, materials, components, and equipment, with Park noting that former President Moon Jae-in's initial 50 million KRW investment in August 2019 is now valued at approximately 439.24 million KRW based on the fund's returns.
Pilseung Korea Fund Records Near-800% Return Since 2019
The Pilseung Korea Fund, managed by NH-Amundi Asset Management, has delivered a cumulative return approaching 800% since its inception in August 2019. Park Jin-ho, the fund's portfolio manager and CIO of the firm's equity division, stated in the interview that "preemptive inclusion of core stocks directly benefiting from the AI investment cycle" drove the performance. He added that the fund invests not only in Samsung Electronics and SK Hynix, which have the strongest AI competitiveness, but also in value chain companies. Former President Moon Jae-in's 50 million KRW investment at the fund's launch is now valued at 439.24 million KRW based on simple calculation. The fund's net assets exceeded 2 trillion KRW early last month.
Portfolio Concentrates 80-90% in IT Sector
The Pilseung Korea Fund allocates 80-90% of its portfolio to the IT sector, with holdings as of the 5th of last month including Samsung Electronics (29.34%), SK Hynix (19.68%), HANARO Fn K-Semiconductor ETF (6.15%), SK Square (5%), and Samsung Electro-Mechanics (3.27%). Park explained that the fund targets Korean companies with global competitiveness in semiconductors, materials, components, and equipment. He stated that "the AI industry is still in its early stages" and predicted that "AI will be applied to robot brains, autonomous driving, and more." Park further elaborated that "as people ask AI about their own lives, an era of '1 person, 1 server' where individuals have their own data servers could open, requiring tremendous memory semiconductors."
Samsung Electronics and SK Hynix Dominate Holdings
Samsung Electronics and SK Hynix together account for approximately 49% of the fund's portfolio as of the 5th of last month. Park structured the portfolio around semiconductors based on his assessment that semiconductor stocks will continue to rise. He noted that benefits from AI industry development will extend beyond large-cap semiconductor stocks to materials, components, and equipment suppliers. Park stated that "semiconductor materials, components, and equipment see profit increases when volume grows rather than memory prices, and supply will increase steadily starting next year." He added that "the semiconductor equipment market, currently at $120 billion annually, is growing rapidly with forecasts increasing to $300 billion."
Samsung Electro-Mechanics Surged 680% This Year
Park highlighted that Samsung Electro-Mechanics, a substrate manufacturer, surged 680% this year due to emerging AI infrastructure value chains including high-value substrates and power equipment. He explained that "industries experiencing 'bottlenecks' due to large-scale AI investment are growing," noting that "memory semiconductors, substrates, and power equipment are currently in a bottleneck state, but after bottlenecks are resolved, new bottleneck industries must be identified for preemptive investment." Park stated that "the Pilseung Korea Fund is working to identify such new AI value chains."
Fund Invests in Shipbuilding, Defense, Healthcare for Diversification
Park disclosed that the fund also invests in other sectors where Korean companies have global competitiveness, including shipbuilding, defense, and healthcare, to prepare for periods when semiconductor stocks consolidate. He advised that "investors should avoid concentrated investment in specific stocks and diversify, given the recent increase in market volatility." Park recommended that investors pay attention to small and mid-cap funds, noting that "while the AI cycle will continue, profit momentum for large-cap semiconductor leaders will decline after the second half of this year."
FAQ
What return has the Pilseung Korea Fund achieved since 2019?
The Pilseung Korea Fund has recorded a cumulative return approaching 800% since its establishment in August 2019. Former President Moon Jae-in's initial 50 million KRW investment is now valued at approximately 439.24 million KRW based on the fund's performance.
What are the top holdings in the Pilseung Korea Fund?
As of the 5th of last month, the fund's top holdings include Samsung Electronics at 29.34%, SK Hynix at 19.68%, HANARO Fn K-Semiconductor ETF at 6.15%, SK Square at 5%, and Samsung Electro-Mechanics at 3.27%, with the IT sector accounting for 80-90% of the portfolio.
Why did Samsung Electro-Mechanics surge 680% this year?
Samsung Electro-Mechanics surged 680% this year due to its role in the emerging AI infrastructure value chain, specifically in high-value substrate manufacturing. Park Jin-ho stated that industries experiencing bottlenecks from large-scale AI investment, including substrates and power equipment, are currently growing.
