Korea Investment Management's Long-Term Asset Allocation Fund Ranks No. 1 in One-Year Returns Among Domestic TDFs

Korea Investment Management announced on April 28 that the Korea Investment Long-Term Asset Allocation Fund ranked first in one-year returns among domestic target date funds (TDFs).

According to FnGuide, as of April 25, the one-year return of the Korea Investment Long-Term Asset Allocation Fund was 16.99%. This figure significantly exceeds the average TDF return of 5.79%.

The Korea Investment Long-Term Asset Allocation Fund is the new name for the 'Korea Investment TDF Araseo Gold 2080 Fund.' The name was changed to maintain consistency with the 'ACE Long-Term Asset Allocation Active' ETF, which also has 2080 as its retirement target date (vintage). There have been no changes to the management strategy or asset composition, which remain the same as before. Currently, Korea Investment Management is the only asset management company in Korea that operates a 2080 vintage TDF, holding both the Korea Investment Long-Term Asset Allocation Fund and the ACE Long-Term Asset Allocation Active ETF.

As a super long-term TDF, the Korea Investment Long-Term Asset Allocation Fund is characterized by an initial risk asset allocation of 99%, increasing the expected rate of return. Risk assets refer to stocks and alternative assets. Korea Investment Management applied a proprietary life-cycle asset allocation curve (glide path) tailored for Koreans. By allocating a high proportion of stocks in the early stages of asset formation, the fund actively seeks returns until the target date of 2080.

The fund's most distinctive feature is the inclusion of gold in its investment assets. Gold has a low correlation with stocks, helping reduce portfolio volatility, and has delivered better real returns compared to bonds. Although global stock markets have recently experienced significant volatility, international gold prices have shown an upward trend, rising 24.89% since the beginning of the year, contributing to the fund's return defense.

Oh Wonseok, Executive Director in charge of pensions at Korea Investment Management, stated, "The Korea Investment Long-Term Asset Allocation Fund was able to provide stable performance to investors even during periods of market volatility by including gold. Gold serves as a powerful hedge during financial crises, so even if the bond allocation is reduced in the early stages of super long-term investment, it plays an important role by providing diversification benefits."

He added, "The fund maximizes the initial risk asset allocation to 99%, allowing for aggressive returns through a high proportion of stocks in the early stages of asset formation. It is a suitable TDF product for investors seeking aggressive pension asset management."

The Korea Investment Long-Term Asset Allocation Fund is currently available for subscription through Korea Investment & Securities, with plans to expand its distributors in the future.

The Korea Investment Long-Term Asset Allocation Fund is a performance-based product, and past returns do not guarantee future results. Principal loss may occur depending on management performance.