Didim Fund 100 Days, Steady Returns from Asset Allocation Effects

The Korea Financial Investment Association announced on the 22nd that approximately 59.9 billion KRW flowed into the Didim Fund during about 100 days from its launch on September 25 last year until the end of last year.

As of the end of last year, the fund grew to a principal amount of 139.4 billion KRW. Except for the early launch period, weekly inflows of 2 to 4 billion KRW have been steadily maintained. The upward trend has continued into the beginning of this year. It was analyzed that, in addition to year-end tax credit-driven funds, new funds in the form of pension installment savings are also coming in.

By industry sector, the sales proportions were 83% through securities firms, 10% through banks, and 5% through insurance companies, with sales mainly conducted via securities firms. Securities firms that established a shortcut path to the Didim Fund on their MTS (Mobile Trading System) have concentrated sales. The shortcut path is understood to have significantly improved product accessibility for pension investors who recognize the Didim Fund brand.

Since the fund’s launch, the average return of all Didim Funds recorded 3.29% as of the end of last year. The top 10 Didim Funds (Top10) achieved a return of 6.41%. In the fourth quarter of last year, amid intensified domestic and international political and economic uncertainties, global stock markets including Korea experienced some corrections. The Didim Fund showed relatively solid performance.

The Didim Fund, as an asset allocation fund, appears to have been effective in building a long-term pension investment portfolio diversified by region and asset class, in line with its slogan "Simple Diversification, Solid Pension Preparation." The foreign exchange gain effect from the currency exposure strategy during the high exchange rate phase also had some impact.

Lee Hwan-tae, Head of the Industry Market Division at the Korea Financial Investment Association, stated, "The Didim Fund is a pension-specialized asset allocation fund of the balanced fund (BF) type jointly launched by the industry," and assessed, "It took a good first step based on favorable early performance."

He added, "There is talk of increased financial market volatility this year due to policy shifts such as the second term of the Trump administration in the U.S.," and said, "The Didim Fund, which embodies the asset allocation capabilities of asset managers, could be considered an effective option for subscribers."

He also said, "We will make efforts to build sales infrastructure such as shortcut paths and lineup expansion, as well as institutional support, so that it can grow as a pillar of asset allocation funds."

Seo Yuseok, Chairman of the Korea Financial Investment Association, along with asset management company officials, are attending the 'Didim Fund Launch Ceremony' held on the 16th at the Korea Financial Investment Association in Yeouido, Seoul, posing for a commemorative photo. Photo by Kang Jinhyung aymsdream@