Hantoo Asset Management, TDF Alseo ETF Focus Shows Remarkable Performance After 2 Years

Highest Vintage Return Since Launch
Low Cost Suitable for Long-Term Investment... Net Asset Value Surpasses 2,000 Won
Top Risk-Adjusted Return 'Sharpe Ratio'

Korea Investment Trust Management announced on the 30th that the Korea Investment TDF Alaseo ETF Focus Fund series has recorded the highest returns among all vintages since its launch in November 2022.

According to the fund rating agency KG Zeroin, as of the 29th, the Korea Investment TDF Alaseo ETF Focus Fund series has achieved returns ranging from 29.97% to 39.01% (based on the retirement pension online class) since inception, with all eight vintages ranking first in returns among all domestic TDFs for each respective vintage.

The Korea Investment TDF Alaseo ETF Focus 2060 Fund (mixed - fund of funds, C-Re class) recorded the highest return at 39.01%, significantly outperforming the average return of 25.78% for all domestic TDFs during the same period. The six-month returns of the fund series range from 9.38% to 12.35%, and the one-year returns range from 24.03% to 33.11%. The fund series has maintained stable performance over approximately two years and recently surpassed KRW 200 billion in net assets.

Korea Investment Trust Management was the first domestic asset management company to announce the Long-Term Capital Market Assumptions (LTCMA) last year. LTCMA is a methodology that analyzes expected returns, volatility, and correlations by asset class based on over 40 years of economic data to identify optimal asset combinations. Through LTCMA, Korea Investment Trust Management determined that a combination of currency-exposed global equities and domestic bonds is the optimal strategy. This approach was applied to the asset allocation strategy of the Korea Investment TDF Alaseo ETF Focus Fund series, resulting in excellent management performance.

This year, LTCMA incorporated the 'Golden Growth' strategy, expanding the universe to include alternative assets. Adding 'gold' to the portfolio reduces volatility compared to cross-matching strategies and is expected to improve returns. The 'Golden Growth' universe consists of U.S. growth stocks, domestic equities and bonds, U.S. high-yield bonds, and gold, with overseas assets invested under currency exposure.

The Sharpe ratio (risk-adjusted return) is also excellent. The Sharpe ratio is an indicator of risk management ability, measuring the excess return obtained per unit of risk taken, with higher values indicating superior risk-adjusted performance. Since inception, the Sharpe ratio of this TDF has ranged from 1.82 to 2.06, ranking first among all domestic TDFs.

Target Date Funds (TDFs) automatically adjust asset allocation proportions to deliver stable performance until the investor's target date (vintage), usually retirement. Initially, they maintain a high proportion of risky assets such as stocks, gradually shifting to a higher proportion of safe assets as the target date approaches. Korea Investment Trust Management offers a total of eight vintage TDF product lineups. The Gold 2080 vintage is uniquely managed by them among domestic asset management companies. Currently, the funds are available for subscription through 17 distributors, including Korea Investment & Securities, Kookmin Bank, Shinhan Bank, and KB Securities.

Park Hee-woon, Executive Director of the Solutions Division at Korea Investment Trust Management, stated, "The performance of this fund series is due to effective asset allocation strategies based on in-house research and strict risk management," adding, "Since the funds are managed through ETFs, they offer low fees and efficient diversification." He emphasized, "Retirement pensions are ultra-long-term products with investment horizons of up to 30 years, so it is important to invest long-term at low cost through optimized asset allocation portfolios."

The Korea Investment TDF Alaseo ETF Focus Fund is a performance dividend-type product, and past returns do not guarantee future performance. Principal loss may occur depending on management results.