Korea Investment Trust Management Enhances ETF Competitiveness via Spin-Off and Reorganization
Korea Investment Trust Management is pushing forward with a plan to spin off its exchange-traded fund (ETF) business into a separate entity, alongside a reorganization that will separate passive and active fund operations. This strategic move is interpreted as a response to intensifying competition in the ETF market, aiming to accelerate decision-making and product launches. Notably, Bae Jae-gyu, who led the 'ACE' ETF brand, is expected to head the new company, boosting specialization and operational efficiency. Industry experts believe that this restructuring will provide new growth momentum for the company’s ETF segment.
Currently, Korea Investment Trust Management's ETF brand ACE has ₩34.88 trillion in net assets, ranking 4th in the domestic market. While it was 3rd at the end of 2024, the ranking recently changed as KB Asset Management's 'RISE' brand surpassed it with ₩35.345 trillion in net assets. The specialization by business sector and streamlined decision-making structures are expected to enhance responsiveness to rapidly changing market conditions. Overall, this reorganization is viewed as a significant measure focusing on long-term growth and reinforced competitiveness in the ETF sector.
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Korea Investment Management Pushes for Division of ETF Organization... Passive and Active Dualization System - Yonhap InfomaxKorea Investment Management is pushing to separate the organization responsible for ETFs into a separate corporate entity. With the recent growth of the ETF market branching from passive-focused to various forms such as 'fully active', it is interpreted as a strategy to strengthen individual expertise by dividing organizations based on the nature of the products. According to the financial investment industry on the 26th, Korea Investment Management recently decided internally to pursue the division of the organization and personnel centering on the ETF business division. This organizational restructuring aims to strengthen the specialization of respective businesses by separating passive and active management in response to the changing ETF environment. The company has been focusing mainly on passive management so far.
Hanwha Investment & Securities reviews specialization of management organization...Considering strengthening separation of passive and active - EdailyHanwha Investment Management has recently undertaken a review of organizational restructuring to enhance the competitiveness of its Exchange Traded Fund (ETF) business. It is understood that discussions are underway to strengthen the role differentiation between passive and active management teams and to enhance the expertise of each organization in response to the expansion and intensified competition of the ETF market. ...
Korea Investment Management to Separate Passive ETF... Restructuring Due to Market Share DeclineKorea Investment Management to Separate Passive ETF... Restructuring Due to Market Share Decline. On the 22nd, a board meeting was held to approve the separation of the passive segment into a separate entity. The higher proportion of foreign ETFs compared to domestic ones raised concerns over profitability and performance. The growing sense of crisis due to the narrowing gap in market share with KB Asset Management.