Two asset managers expected to divide roles

Passive and active ETF focus seen emerging from restructuring

[Courtesy of Korea Investment Trust Management]
[Courtesy of Korea Investment Trust Management]

Some business divisions of Korea Investment Trust Management — including its securities funds and money market funds — will be transferred to Korea Investment Value Asset Management.

According to a regulatory disclosure Thursday, Korea Investment Holdings said its two asset management subsidiaries each held board meetings that day and approved a spin-off merger agreement. Under the plan, Korea Investment Trust Management will spin off its securities fund and MMF businesses, which will then be absorbed into Korea Investment Value Asset Management.

The effective date of the merger is Jan. 1 next year.

The two firms plan to hold an extraordinary shareholders meeting on Sept. 11 to vote on the transaction.

Once the merger is completed, the two asset managers are expected to take on clearly defined, separate roles.

Korea Investment Trust Management is expected to refocus around passive ETFs, while Korea Investment Value Asset Management is seen pivoting toward active ETFs.

Korea Investment Value Asset Management has managed some domestic equity funds, but has primarily handled the holding company's proprietary capital.


notstrong@heraldcorp.com