Hantoo Asset Management, Korea Investment MySuper Automatic Growth Type... "No.1 in Returns Since Default Option Introduction"

Korea Investment Trust Management announced on the 16th that the Korea Investment MySuper Alaseo Growth Fund recorded the highest return since the introduction of the default option in July last year.

According to the fund rating agency FnGuide, as of the closing price on the 15th, the Korea Investment MySuper Alaseo Growth Fund (mixed type) posted a one-year return of 29.69%, the highest among all fund products within the default option.

The recent six-month return is 21.33%, and the return since inception is 45.74%. This fund sets the equity ratio at over 70%, making it suitable for an aggressive investment style. It is gaining popularity as a pension investment product with high expected returns. The fund size more than doubled compared to the end of last year, showing an upward trend. The Korea Investment MySuper Alaseo Stable Fund, designed for conservative investors, also continues to deliver stable performance with a one-year return of 14.07% and a six-month return of 7.97%.

The Korea Investment MySuper Alaseo Growth Fund is currently included with a 100% allocation in the Korea Investment Securities Default Option High-Risk BF1, which ranked first in returns among all 309 default options announced by the Ministry of Employment and Labor as of the end of Q1 this year.

The Korea Investment MySuper Alaseo Fund series is the first domestic asset allocation strategy product benchmarking Australia’s default option MySuper, a pension advanced country. It seeks excess returns linked to the Consumer Price Index (CPI). The fund incorporates a diverse range of global assets related to inflation, including Australian stocks, U.S. inflation-linked government bonds, alternative assets (gold, commodities, real estate, etc.), U.S. large-cap growth stocks, and domestic bonds, aiming to secure the real purchasing power of retirement funds.

The Korea Investment TDF Alaseo 2050 Fund UH also shows notable returns. This fund ranked 4th among all default option funds with a one-year return of 26.17%. The six-month return is 16.17%. The fund size increased by more than 200% from 22 billion KRW at the end of last year to 45.5 billion KRW. The Korea Investment TDF Alaseo Fund series was launched in 2017 through collaboration with global pension specialist T. Rowe Price. Nine vintages are managed in five-year intervals from 2020 to 2060.

Oh Won-seok, Executive Director in charge of pensions at Korea Investment Trust Management, said, “The purpose of the default option is for investors to prepare real retirement funds through investment returns exceeding inflation.” He added, “In an era of high inflation, choosing an efficient asset allocation solution is important.”

He continued, “The Korea Investment MySuper Fund series incorporates assets related to inflation to reduce volatility and expect stable returns. Since pension investment is a long-term investment, we recommend investors understand their own investment style and goals and consistently invest in professionally managed products.”