Kiwoom Kiwo Dream TDF Fund Surpasses 600 Billion KRW in Net Assets

Kiwoom Asset Management announced on July 4 that the net asset value of its flagship retirement product, the 'Kiwoom Kiwo Dream TDF' fund, surpassed 600 billion KRW on July 1. This marks the first time for an independent asset management company without a retirement pension business operator to achieve this milestone. The accomplishment is particularly significant as it was achieved purely through product competitiveness and investment performance.

The Kiwoom Kiwo Dream TDF increased its net assets by 100 billion KRW in just nine months after surpassing 500 billion KRW in October last year. This growth reflects the strong trust of investors, based on seven consecutive years of stable performance. The fund continues to attract inflows as it has been included in the default option portfolios of more than 12 retirement pension providers.

The success of the Kiwoom Kiwo Dream TDF lies in its differentiated management strategy. It utilizes ETFs, which have lower costs than traditional funds, making it advantageous for long-term performance. The fund also employs an open architecture structure, enabling it to select optimal assets from a broad investment universe through in-house management. It carefully selects global ETFs such as BlackRock iShares, Vanguard, Invesco, and State Street SPDR for its portfolio, and provides a smart TDF solution that automatically adjusts asset allocation according to the investor's life cycle.

Kiwoom Asset Management currently operates a comprehensive TDF lineup with eight different funds, covering target retirement years from 2025 to 2060. This allows the company to provide retirement investment solutions for all life stages, from young professionals to those nearing retirement.

Kim Hyena, team leader at Kiwoom Asset Management, stated, "Recently, direct investment using ETFs has been increasing in the retirement pension market due to lower fees and trading convenience. However, according to behavioral finance studies, frequent trading can actually be detrimental to long-term returns."

She added, "The Kiwoom Kiwo Dream TDF is designed so that the portfolio is automatically adjusted according to the investor's retirement date, making it an optimal solution for long-term investment."

TDFs (Target Date Funds) have been designated as default option products in advanced pension markets such as the United States, Australia, and the United Kingdom, and have proven their performance and stability over a long period. In Korea as well, TDFs are gaining attention as a leading investment alternative among performance-based retirement pension products.