KB Securities said on the 12th it was selected as the preferred negotiator in the evaluation to choose the "4th housing & urban fund dedicated outsourced chief investment officer (OCIO)" hosted by the Ministry of Land, Infrastructure and Transport.
An OCIO is a system in which asset holders such as pension funds, public institutions, and corporations entrust all or part of their asset management to external professional institutions (securities firms, asset managers, etc.). The Ministry of Land, Infrastructure and Transport introduced the system in 2014 to enhance the expertise and stability of managing the housing & urban fund's surplus funds.
KB Securities said it established a tailored strategy that reflects the housing & urban fund's investment purpose and characteristics, and organically combined support from KB Financial Group and KB Securities' research capabilities during the selection process.
The proposal for this project was overseen by Kim Seong-hee, an executive director at the OCIO Solutions Division. Kim is a fund management expert who previously served as head of the Industrial Accident Compensation Insurance Fund and the pension fund investment pool, building experience and expertise in managing large public funds.
KB Securities plans to further strengthen its position in the domestic OCIO market based on this selection.
In particular, it said it will foster the OCIO business as a core growth engine for the company, leveraging its performance in the large public fund market, which has high barriers to entry. In addition, in line with growing OCIO demand from private corporations and retirement pension funds, it plans to continuously expand services optimized for each client's financial characteristics and investment objectives.
Kim Seong-hee, an executive director at KB Securities, said, "We will do our best to balance the stability and profitability of the housing & urban fund and to establish a management system that aligns with the fund's characteristics."