DB Asset Management's Asset Allocation Pension Fund 'Didim Fund' Shows Excellent Performance

The financial investment industry jointly launched the Didim Fund, an asset allocation-type pension fund designed for the stable retirement preparation of the public, on the 25th of last month. Twenty-five asset management companies participated.

DB Asset Management introduced the 'DB Didim OCIO Asset Allocation Neutral Fund,' which was modified from the 'DB OCIO Asset Allocation Neutral Fund' launched and managed in August 2023 to meet the requirements of the Didim Fund.

The DB Didim OCIO Asset Allocation Neutral Fund is an asset allocation fund that diversifies investments into ETFs of domestic and international stocks, bonds, and alternative assets. The fund's management objective is to set the minimum required rate of return at ‘corporate bonds (BBB- or higher) 3 years + 1%’ to target higher returns than competing bond funds. Since its inception, the fund has recorded a return of 12.42%, outperforming the minimum required return by +6.38% during the same period.

DB Asset Management established the GIS Division, staffed with top-tier quantitative managers in the industry, to provide asset allocation solutions. Based on excellent quantitative capabilities, since the end of 2021, they have developed a proprietary asset allocation system called the A-cube Simulator (Asset Allocation Analyzer), which is utilized for asset allocation management and consulting. It is designed to offer customized portfolios through simulations that reflect various asset compositions, currency hedging methods, and asset-specific constraints.

For asset allocation funds to achieve their investment goals, active risk management is necessary in tail risk situations. Tail risk refers to scenarios where many companies face difficulties in funding consecutively due to credit crunches caused by geopolitical risks or specific corporate defaults, rather than normal economic fluctuations affecting asset prices.

DB Asset Management has independently developed the LCI (Leading Credit Index) and CDI (Cross Dispersion Index) and actively implements risk management when tail risk signals occur.

The DB Didim OCIO Asset Allocation Neutral Fund is sold through DB Financial Investment, Mirae Asset Securities, Hyundai Motor Securities, Woori Investment & Securities, and others. To suit investment purposes, there are various classes available, including DC/IRP-type retirement pension classes, as well as A Class, Online Class, DB Class, and Pension Savings Class.