Korea Investment Management announced on the 21st that it has launched a retirement pension robo-advisor service called "KimRobo."
According to Korea Investment Management, KimRobo is an algorithm-based service that automatically allocates assets according to investment goals, designed to efficiently manage retirement pensions without complex investment knowledge. Notably, it reflects the operating processes of global asset allocation funds that are maintaining stable trends in the retirement pension public fund market, such as the Korea Investment TDF, the Korea Investment MySuper fund, and others.
The newly unveiled KimRobo consists of a total of four algorithms: ▲Inflation hedge_MS_TAA_P ▲Target return_GG_TAA_P ▲Fixed equity ratio_GG_TAA_P ▲Target volatility_GG_TAA_P, each tailored to construct a portfolio based on the investor's preferences and investment objectives. For example, the "inflation hedge" algorithm aims to achieve excess returns of 5% compared to the inflation rate.
KimRobo optimizes the portfolio based on the Long-Term Capital Market Outlook (LTCMA) released annually by Korea Investment Management. LTCMA provides data on returns, volatility by asset class optimized for Korean won investors, and correlations between asset classes. Based on this, KimRobo enhances operational efficiency by applying stylized facts such as the advantage of foreign stock exposure over domestic stocks and domestic Treasury Bonds over foreign Treasury Bonds.
The service can be accessed 24 hours a day through Korea Investment Securities' individual retirement pension (IRP) accounts. If there is no IRP account with Korea Investment Securities, one can open an account online and then utilize the service.
Kang Seong-su, executive director of the solutions division at Korea Investment Management, who oversaw the design and development of KimRobo, noted, "Through KimRobo, general retirement pension investors can expect long-term revenues at the level of professional investors," adding, "We will continuously strive to refine our services to make it easy and convenient for anyone to manage their retirement pensions."