According to the Korea Financial Investment Association on March 13, Fount managed funds amounting to 137.6 billion won ($121 million) as of the end of 2018, to nudge past the 102.4 billion won of Quarterback.
The runners-up group struggled to catch up with the two run-away leaders as they could not even reach 20 billion won in their fund sizes.
Fount Investment, which was founded in 2016, saw its funds jump almost four-fold last year alone. Banks, insurers and institutional investors knocked on the door of the Seoul-based outfit to boost the size of the funds.
Its popularity is attributable to its good performances – last year when the country’s share prices plunged more than 15 percent, Fount funds lost just 2 to 3 percent. During the bullish run, it also outperformed the market.
Advancing into Asian markets
Based on its expertise and experience in the domestic market, Fount founder and CEO Kim Young-been said the company would make a foray into offshore markets.
“As a leading company in the robo-adviser industry, we feel the responsibility to offer services good enough to realize investors’ economic freedom,” Kim told The Korea News Plus.
“In the firm belief that robo-advisers have to benefit as many people as possible, we will advance into other Asian markets.”
Robo-advisers provide financial advice based on mathematical rules, or algorithms, with minimal human intervention. These algorithms are typically executed by software.
Numerous robo-advisory services are available across the world; some substantially outperform human advisers although some are underperformers.
But observers point out that the services’ outlook is bright because the capabilities of robo-advisers are expected to get better in line with the improvement in related technologies.