Korea Investment TDF Self-Managed ETF Focus Fund, Top 2-Year Return

Korea Investment Trust Management announced on the 10th that its lifecycle fund (TDF) product, 'Korea Investment TDF Alseora ETF Focus Fund,' ranked first in the recent 2-year returns across all vintages (target dates).

The Korea Investment TDF Alseora ETF Focus Fund is a TDF product launched by Korea Investment Trust Management in October 2022. TDFs are characterized by automatically adjusting the proportion of risky assets until a specific point in time to achieve stable performance, mainly used to accumulate a lump sum by retirement. For example, the Korea Investment TDF Alseora ETF Focus 2060 Fund gradually reduces the proportion of risky assets until 2060.

According to FnGuide as of the 7th, the Korea Investment TDF Alseora ETF Focus Fund recorded the highest recent 2-year returns across all vintages. The fund currently holds seven vintages in 5-year increments from 2030 to 2060. The recent 2-year returns by vintage (C-Re class basis) were ▲46.17% (2060) ▲44.69% (2055) ▲42.86% (2050) ▲41.04% (2045) ▲38.40% (2040) ▲35.70% (2035) ▲33.15% (2030).

The returns recorded by this fund exceed the average returns of domestic TDF vintages set during the same period (21.39% to 35.28%). Not only in the recent 2 years but also in the recent 1-year returns, it ranked first across all vintages with 14.99% to 19.67%. The 6-month returns ranged from 8.81% to 12.22%, significantly surpassing the average (4.87% to 9.28%).

The excellent performance of the Korea Investment TDF Alseora ETF Focus Fund is attributed to the Glide Path and Long-Term Capital Market Assumptions (LTCMA) developed in-house by Korea Investment Trust Management. The portfolio composed according to LTCMA, derived from over 40 years of economic analysis, consisting of 'currency-exposed overseas stocks, domestic bonds, and gold,' is leading to these results.

The Korea Investment TDF Alseora Gold 2080 Fund, the only domestic 2080 vintage TDF adopting the same management strategy as the Korea Investment TDF Alseora ETF Focus Fund, also shows excellent performance. This fund, established in April 2024, recorded recent 6-month and since-inception returns (C-Re class basis) of 16.78% and 20.54%, respectively.

Park Hee-woon, Head of Solutions at Korea Investment Trust Management, emphasized, "The Korea Investment TDF Alseora ETF Focus Fund maintains higher returns compared to similar products based on a portfolio optimized for Koreans," adding, "As can be seen in the fund guide, not only the returns but also the Sharpe ratio (risk-adjusted return) is excellent among TDF products."

He continued, "On the 11th, we plan to list three ACE ETFs combining the performance of the Korea Investment TDF Alseora ETF Focus Fund with the advantages of ETFs: ACE TDF 2030 Active ETF, ACE TDF 2050 Active ETF, and ACE Long-Term Asset Allocation Active ETF," expressing hope that these can be used as investment tools for retirement fund preparation.

Both the Korea Investment TDF Alseora ETF Focus Fund and ACE ETFs are dividend-paying products, and past performance does not guarantee future results. Additionally, investors should be aware that principal loss may occur depending on management outcomes.