Hyundai Investment Asset Management announced on September 22 that the net asset value of the Hyundai Investment Didim Global Multi-Asset Smart EMP Securities Investment Trust No. 1 (Hybrid-FoF Type) has surpassed 24 billion won, approximately one year after its launch.
The Hyundai Investment Didim EMP Fund has consistently generated returns even in a market characterized by increased volatility.
The Didim Fund is a fund brand introduced under the leadership of the Korea Financial Investment Association. It was launched in September last year with the goal of "revitalizing asset allocation funds specialized for pension assets." Unlike Target Date Funds (TDFs)-the representative asset allocation products in the pension market-which automatically reduce the proportion of risky assets according to the investor’s life cycle, the Didim Fund flexibly adjusts its asset allocation based on market conditions while maintaining a consistent risk level.
The Hyundai Investment Didim EMP Fund also minimizes the risk of concentration in specific asset classes by diversifying investments across global equities, bonds, and alternative asset ETFs. It employs an ETF Managed Portfolio (EMP) strategy that aims for consistent long-term performance. To estimate investment risk and expected returns by asset class, it utilizes a proprietary AI statistical model called the "Multi-Asset Macro AI Model." This quantitative method uses economic indicators such as economic growth forecasts and inflation outlooks to classify economic phases into expansion, adjustment, and contraction, and estimates the investment risk and expected return of each asset accordingly.
A Hyundai Investment Asset Management representative stated, "By minimizing the manager’s subjective errors in judgment, we are able to proactively respond to the market even during periods of high volatility."
As of September 16, the fund has recorded an annualized return of 16.3% and a standard deviation of 5.23% since inception, demonstrating strong risk-adjusted performance. It ranks among the top performers out of the 25 Didim Funds launched together.
During the first half of this year, as tariff risks originating from the United States emerged, the fund actively adjusted its allocations to gold and hedge fund strategy ETFs, which led to strong performance. The proportion of gold investments, which rose by more than 30% compared to the beginning of the year, was proactively increased. From February to April, when tariff risks became pronounced, the fund actively included alternative investment ETFs based on equity strategies using the S&P 500 and US ultra-short-term bonds. This helped defend returns during the sharp decline in US equities caused by the tariff shock.
Considering foreign exchange as an investment asset and implementing a flexible currency hedging strategy also contributed to the fund's strong performance. During the US presidential election at the end of last year, as the probability of Donald Trump’s victory increased and the US dollar strengthened, the fund used its proprietary macro AI model to statistically forecast exchange rates. By gradually increasing currency exposure, it secured foreign exchange gains. This strategic approach demonstrates that the fund goes beyond simple diversification, achieving both long-term stability and performance through active risk management and an ultra-diversified structure.
Recently, benchmark interest rates set by the US and other major central banks remain above historical averages. The market faces a combination of risks, including geopolitical risks and concerns about economic slowdown. At this point, a strategy of diversifying across various asset classes is more essential than ever, rather than concentrating investments in a single asset. However, for general investors, it is difficult to implement an active asset allocation strategy due to a lack of information on diverse assets, the challenges of regular rebalancing, and psychological fear caused by market volatility.
Experts explained that, rather than investing directly in various assets, investors can easily and effectively share the benefits of diversified asset class investments by using products like the Didim Fund for indirect investment.
A company representative explained, "By investing in an ultra-diversified manner at a higher level than typical EMP strategy funds, the fund strengthens its ability to defend against losses during sharp market downturns, while over the long term, the underperformance of certain assets can be offset by the performance of others."
He added, "A fund designed to secure stability and deliver consistent performance can be a solution for long-term investments such as pensions."
The inflow of over 20 billion won in new capital this year is the result of growing demand not only from general investors managing retirement pension assets, but also from high-net-worth individuals, corporations, and institutional investors such as pension funds with a mid- to long-term investment horizon.
Hyundai Investment Asset Management plans to establish the fund as a long-term investment alternative and continue to expand its distribution channels. The fund is currently available through IBK Investment & Securities, Daishin Securities, Meritz Securities, Mirae Asset Securities, Samsung Securities, Woori Investment & Securities, Kiwoom Securities, Hana Securities, Hanwha Investment & Securities, and Hyundai Motor Securities. The company intends to further expand its network of distributors.
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