Mirae Asset Investment and Pension Center Publishes Korea's First TDF Specialized Book

[Asia Economy Reporter Minji Lee] Mirae Asset Investment and Pension Center announced on the 6th that it has published Korea's first specialized book on TDF titled "Pension Asset Management, Navigate Autonomously with TDF."

TDF (Target Date Fund) is a product that automatically adjusts the investment ratio according to the target date. Following the investment boom among individual investors after the COVID-19 pandemic, TDF net assets rapidly increased from 1.373 trillion KRW at the end of 2018 to 9.5053 trillion KRW by the end of September 2021 as the trend moved into the pension market.

Reflecting this interest, the publication was created to introduce TDF comprehensively and in an easy-to-understand manner to pension subscribers who may not have extensive investment experience. The publication "Pension Asset Management, Navigate Autonomously with TDF" is composed of three chapters: "What is TDF?", "How is TDF Managed?", and "Which TDF Should You Choose?".

The first chapter, "What is TDF?", introduces what TDF is, why TDF is ideal for managing pensions, and which investors are suitable for TDF. It examines the characteristics of pensions and TDF and explores how TDF has grown in the U.S. and Korea. Additionally, it includes several questions to help pension subscribers identify suitable financial products.

The second chapter, "How is TDF Managed?", takes a closer look at how TDF allocates and manages assets. The book explains how the glide path, the core engine of TDF, is created and operates, and how asset management is conducted after the target date has passed. It also reviews what assets, besides stocks and bonds, are invested in, why indirect investment through funds is used, and how currency hedging is handled.

The final chapter, "Which TDF Should You Choose?", discusses the factors pension subscribers should check when selecting a TDF that fits them. It also explores pension asset management strategies using TDF.

Kim Dong-yeop, Executive Director of Mirae Asset Investment and Pension Center and co-author of the book, said, "To cross the vast sea of retirement, a ship called a pension is needed, and the engine of this ship must be long-term investment assets. If you lack investment experience and time, entrusting your retirement funds to a TDF equipped with an autopilot system can be a good solution."

"Pension Asset Management, Navigate Autonomously with TDF" is available as an e-book on the Mirae Asset Investment and Pension Center website. By entering the event held on the website, 200 people will be selected by lottery to receive the book, and another 200 will receive gifticons. On the Mirae Asset Investment and Pension Center YouTube channel "Investment and Pension TV," you can also find a series of educational videos on TDF.