Korea Investment Trust Management announced on the 6th that the assets under management of the Korea Investment TDF Alseora ETF Focus Fund series have surpassed 200 billion KRW. Target Date Funds (TDF) are funds that automatically adjust asset allocation to achieve stable performance until the target date (vintage).
According to FnGuide, as of the closing price on the 5th, the assets under management of the Korea Investment TDF Alseora ETF Focus Fund series reached 204.9 billion KRW, growing approximately 3.8 times with an increase of over 151 billion KRW compared to the end of 2023. Compared to early last month, about 52.3 billion KRW was inflowed in just one month.
The increase in assets under management is attributed to consistently high returns. Launched in October 2022, this series ranks among the top for each vintage in terms of year-to-date and one-year returns among domestically established TDFs. The 6-month returns of the Korea Investment TDF Alseora ETF Focus Fund series range from 10.95% to 14.37%, and the one-year returns range from 23.21% to 32.36%.
The Korea Investment TDF Alseora ETF Focus Fund series secured a high risk-adjusted return (Sharpe ratio) by including domestic bonds and gold ETFs, which have low correlation with global stocks. It also enhanced portfolio stability through low-cost diversified investment using exchange-traded funds (ETFs) and rule-based rebalancing. Notably, based on its proprietary Long-Term Capital Market Assumptions (LTCMA) and research, the fund derived an analysis that incorporating domestic bonds in asset allocation portfolios is advantageous, applying this to its management to differentiate itself.
The fund series also showed excellent results in the Sharpe ratio. It ranked first in the Sharpe ratio (one-year basis) for each vintage, and the series average Sharpe ratio is 2.81, the highest among domestic TDF series. During the same period, the average Sharpe ratio for all domestic TDF series was 1.73. The Sharpe ratio measures returns relative to investment risk; a higher value indicates lower volatility, which is important for long-term investments such as pension investments.
The fund series currently offers a total of eight vintage lineups (△2030 △2035 △2040 △2045 △2050 △2055 △2060 △2080). Among them, the Korea Investment TDF Alseora Gold 2080 Fund is the only domestic 2080 vintage TDF product. It is characterized by setting the initial risk asset allocation at 99% to increase expected returns while including gold, which has low correlation with stocks, to improve risk-adjusted returns. This fund is suitable for investors with an aggressive investment style seeking long-term high returns, investors considering theme or regional choices within equity investments, and those considering global asset allocation equity investments.
Park Hee-woon, Executive Director of the Solutions Division, said, “TDFs are asset allocation products where both returns and risk-adjusted returns are important. The Korea Investment TDF Alseora ETF Focus Fund series excels in both metrics and is worth attention for pension investors.”
He added, “Since asset allocation is necessary according to investment style and life cycle, investors should invest according to their economic situation. If direct investment is not feasible, this fund series can be a good alternative.”
Meanwhile, the Korea Investment TDF Alseora ETF Focus Fund series is available for subscription through a total of 17 distributors, including Korea Investment & Securities, Kookmin Bank, Shinhan Bank, and KB Securities. This product is a performance-based dividend type, and past returns do not guarantee future returns; principal loss may occur depending on management results.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
