Hantoo Asset Management, TDF Alseo ETF Focus... "Last Year's Return and Sharpe Ratio Performance Ranked 1st"

Korea Investment Trust Management announced on the 6th that the Korea Investment TDF Alseora ETF Focus Fund series ranked first in both 1-year returns and Sharpe ratio across all vintages (retirement dates) last year, following its performance in 2023.

According to the fund rating agency KG Zeroin, the Korea Investment TDF Alseora ETF Focus Fund series achieved the highest 1-year returns among all vintages based on the retirement pension online class as of the end of the previous year. The 1-year returns of the fund series ranged from 19.34% to 28.37%, and the 6-month returns ranged from 8.25% to 11.10%. In 2023, it also recorded the highest 1-year returns of 17.17% to 22.93%. The Korea Investment TDF Alseora ETF Focus Fund series was launched in October 2022 and includes a total of seven vintage lineups (△2030 △2035 △2040 △2045 △2050 △2055 △2060), and began sales in the retirement pension online class (C-Re) in November of the same year.

Consistent capital inflow is also notable. The assets under management of the Korea Investment TDF Alseora ETF Focus Fund series reached 265.5 billion KRW as of the end of the previous year, growing rapidly by 211.6 billion KRW compared to the end of 2023.

The fund series also showed excellent results in the Sharpe ratio, which measures returns relative to investment risk. It ranked first in Sharpe ratio for each vintage, and the series’ average Sharpe ratio (1-year basis) ranged from 2.62 to 2.75, the highest among domestic TDF series, widening the gap with the second place. During the same period, the second-place Sharpe ratios for each vintage ranged from 1.72 to 2.36, and the average Sharpe ratio for all domestic TDF series was 1.34.

Korea Investment Trust Management established a Solutions Headquarters in July 2022 to strengthen its target date fund (TDF) and domestic outsourced chief investment officer (OCIO) fund business. Leveraging expertise in global asset allocation, it launched the Korea Investment TDF Alseora ETF Focus Fund series, which lowers total costs through investments in global exchange-traded funds (ETFs). It also enhanced operational efficiency based on three management philosophies: ‘investment considering risk-adjusted returns,’ ‘global diversification through portfolio optimization,’ and ‘long-term, low-cost investment.’

Park Hee-woon, head of the Solutions Headquarters at Korea Investment Trust Management, explained, “To apply the management philosophy to this fund series, we independently implemented methodologies such as Long-Term Capital Market Assumptions (LTCMA), dynamic asset allocation curves (Glide Path), and portfolio optimization models.” He added, “In particular, we developed a TDF portfolio construction methodology optimized for Korean won investors.” He further noted, “We utilized a cross-matching strategy investing in overseas stocks with currency exposure for equities and domestic bonds for fixed income.”

Kang Sung-soo, executive director in charge of solutions at Korea Investment Trust Management, emphasized, “The strength of our management process can be seen not only in the Korea Investment TDF Alseora ETF Focus Fund but also in Balanced (BF) funds, OCIO funds, and retirement pension robo-advisors, all showing excellent performance.” According to data released by the Ministry of Employment and Labor, as of the end of the third quarter last year, the Korea Investment Securities Default Option High-Risk BF1, which fully incorporates the Korea Investment MySuper Alseora Growth Fund, recorded the highest returns year-to-date among all retirement pension default option (pre-designated management) products.