The Financial Services Commission plans an official introduction of robo-advisors here in the first half of 2017. (image: Yonhap)
SEOUL, Nov. 25 (Korea Bizwire) – It’s been a month since Korea began the pilot operation of a robo-advisor for financial investments, and thus far, it has left some positive impressions.
According to Koscom, an IT solution company that’s overseeing the test bed, the AI-based system managed to make a profit on all portfolios investing in foreign assets.
The average ROA for stable investment types was 1.23 percent, which was the highest among all 34 algorithm portfolios from 29 companies managed by a robo-advisor. It was followed by overseas risk-neutral investment types (1.08 percent), and overseas active investment types (0.92 percent).
Contrarily, it made negative ROAs on all domestic portfolios, with stable investments averaging -0.95 percent, risk-neutral investments at -1.45 percent, and active investments at -1.75 percent.
According to Koscom, the positive ROAs for investment in foreign assets were primarily the result of rallying stock markets in developed nations following Donald Trump’s triumph in the U.S. election.
Meanwhile, among independent portfolios, QV Global Asset Allocation (stable investment type) by NH Investment & Securities recorded the highest ROA among overseas portfolios at 2.28 percent. Among domestic portfolios, Kiwoom Securities’ Global Asset Allocation (active investment type) managed a 1.24 percent ROA.
The Financial Services Commission plans an official introduction of robo-advisors here in the first half of 2017.
By Kevin Lee (kevinlee@koreabizwire.com)
