Hyundai Motor Securities Offers Customized Automated Investment with IRP Robo-Advisor

Hyundai Motor Securities' Individual Retirement Pension (IRP) Robo-Advisor (RA) service is emerging as a new alternative for retirement pension asset management. In particular, demand for discretionary services is steadily increasing, especially among customers who find it burdensome to invest directly in the volatile stock market environment.

Individual Retirement Pension (IRP) Robo-Advisor (RA) Service. Hyundai Motor Securities

According to Hyundai Motor Securities on August 7, this service was launched in partnership with Korea Investment Management as part of the "Innovative Financial Service for Enhancing Retirement Pension Returns" designated by the Financial Services Commission. It utilizes algorithms, artificial intelligence (AI), and big data—systems that have passed both operational and system reviews by Koscom—to analyze investors' profiles and market conditions. The service is suitable for customers who want their retirement pension assets managed through customized portfolios based on their investor profile and automatically adjusted according to market conditions.

Customers using the Robo-Advisor service can choose between "fixed stock allocation" and "target volatility" strategies to suit their investment objectives. Each algorithm employs a different approach but primarily invests in domestic listed Exchange Traded Funds (ETFs). The fixed stock allocation algorithm maintains a preset ratio between equity ETFs and bond ETFs within a predetermined range. The proportion of equity ETFs can be set from 30% up to a maximum of 70%, and the asset pool mainly consists of U.S. growth stocks, gold, domestic equities, and domestic bonds.

The target volatility algorithm focuses on risk management by maintaining a predetermined level of volatility. This volatility target can be set from 5% up to a maximum of 9%. The investment pool mainly comprises U.S. growth stocks, equities from developed countries outside the U.S., emerging markets equities, and domestic bonds.

This service is available for subscription through the Hyundai Motor Securities mobile trading system (MTS) "Tomorrow." The minimum subscription amount is 1 million won, and the annual contribution limit is 9 million won. Hyundai Motor Securities plans to expand its lineup of RA services by exploring additional partnerships with various discretionary investment firms beyond Korea Investment Management in order to offer customers a wider array of RA options suited to different investor profiles and objectives.

Jihoon An, Head of Pension Business at Hyundai Motor Securities, said, "This service will be an attractive alternative for customers who find it difficult to manage their retirement pension assets," adding, "We will continue to provide a variety of products and services that can enhance customers’ retirement pension returns."

This content was produced with the assistance of AI translation services.