Korea Investment Management announced on the 11th that it held the ‘ACE TDF ETF New Listing Commemorative Seminar’ to revisit the rapidly growing target date fund (TDF) market and examine recent issues surrounding TDFs, including investment directions and strategies.
In his opening remarks, Bae Jaekyu, President of Korea Investment Management, said, "TDF has now established itself as a core investment product for successful pension investments," adding, "We are pleased to launch the ACE TDF ETF at this important time and hold an event to explore the latest trends."
He continued, "The importance of TDFs will greatly increase and they will become a major trend in the investment market," emphasizing, "They are essential basic investment products that must be included in portfolios and are optimal for long-term investment."
Professor Kim Jangho from Korea University Graduate School of Technology Management and Executive Director Kang Seongsu, Head of Solutions at Korea Investment Management, served as presenters. Professor Kim is well known as an expert in investment analysis using asset allocation models. Executive Director Kang led the portfolio design of the ACE TDF ETF. This ETF series is managed based on the Long-Term Capital Market Assumptions (LTCMA) and a proprietary glide path, with Executive Director Kang leading the development of this methodology.
Professor Kim analyzed portfolio theory, asset allocation, and technological innovation for long-term investment. He explained investment analysis results using machine learning, AI, and large language models (LLM), as well as recent trends in asset allocation research. He stated, "Recent technological innovations have diversified investment analysis and decision-making models," and introduced, "To achieve successful long-term investment, it is important to maximize compound interest effects and reduce downside risk through diversified asset allocation."
He also emphasized, "Since optimal portfolios vary according to investor preferences, both investment goals (Why) and methods (How) are important," adding, "For the common investment goal of preparing retirement funds, long-term investment and period-specific asset allocation are most crucial."
Professor Kim further advised, "A strategic approach according to the investment period is necessary, and the most suitable investment product for efficient asset allocation is the TDF," noting, "TDFs have high investment utility as they can reflect personalized consumption goals through glide path design."
Executive Director Kang Seongsu, who spoke next, introduced, "TDFs are attractive pension investment products with the convenience and simplicity of automatic risk adjustment," and described, "The newly launched ACE TDF ETF series combines the advantages of TDFs and ETFs."
He added, "They offer low costs, ease of trading, high liquidity, and transparent asset details," and said, "These products apply Korea Investment Management’s expertise using LTCMA, glide paths, and portfolios optimized for Korean won investors." Furthermore, he explained, "The portfolio mainly diversifies investments into U.S. growth stocks, domestic bonds, and gold," noting, "Gold has a low correlation with stocks and offers superior real returns compared to bonds, so an asset allocation strategy actively utilizing gold will be applied."
The ACE TDF ETF series is a performance-based product, and principal loss may occur depending on management results.
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