Korea Investment TDF Auto ETF Focus Fund Marks 3rd Anniversary... Asset Allocation Strategies Shared

Achieved 519.3 Billion KRW in Subscriptions and 811.5 Billion KRW in Net Assets Over Three Years Since Launch
Global Diversification and Optimized Portfolio Strategy
Pursuing Maximum Risk-Adjusted Returns

Korea Investment Trust Management announced on November 5 that it held a retirement pension seminar to mark the third anniversary of the launch of its flagship target date fund (TDF) product, the "Korea Investment TDF Auto ETF Focus Fund."

During the seminar, the company presented effective pension management strategies in the changing retirement environment and discussed the performance and management know-how of the "Korea Investment TDF Auto ETF Focus Fund" over the past three years.

Bae Jaekyu, President of Korea Investment Trust Management, is delivering the opening address at the retirement pension seminar. Korea Investment Trust Management.

Bae Jaekyu, President of Korea Investment Trust Management, stated in his opening address, "TDF has established itself as a leading pension investment fund in Korea. As investor interest in TDFs continues to grow, it is meaningful to hold an event to look back on a product that has consistently attracted attention since its launch." He added, "When the market is booming, funds may flow into stocks, but true investment skills and results are revealed when the market stagnates or crashes. Over time, investing in products like TDFs that consistently deliver results is advantageous in the long term." He also expressed hope that "this seminar will help retirement pension subscribers understand investment strategies tailored to their life cycle and recognize the importance of long-term asset building."

The Korea Investment TDF Auto ETF Focus Fund is a life-cycle fund that automatically adjusts asset allocation ratios based on the investor's retirement target date. It aims to provide stable retirement assets through globally diversified investments utilizing ETFs. Since its launch in October 2022, both its fund size and total net assets have steadily increased, maintaining stable performance.

This stable performance is reflected in risk-adjusted returns (Sharpe Ratio). According to the fund evaluation agency FnGuide, as of the closing price on November 4, all vintages of the Korea Investment TDF Auto ETF Focus series ranked first in Sharpe Ratio over the past three years.

The first presentation was delivered by Heewoon Park, Executive Director of the Solution Headquarters at Korea Investment Trust Management, who spoke on "Withdrawal Pension Investment Methods," explaining safe withdrawal strategies and the importance of asset allocation. Park cited the compound effect of long-term investment during the accumulation phase and illustrated expected retirement fund returns based on market volatility and key risks. He noted, "A representative withdrawal strategy is the 'guardrail strategy,' which flexibly adjusts to market conditions and pursues both sustainability and stability."

He further explained, "The 'bucket strategy,' which divides assets by purpose and adjusts allocation according to living conditions, market, and inflation, should also be considered to achieve more stable withdrawals. The accumulation phase should be designed with withdrawals in mind, and stable management can be achieved through strategic allocation of asset proportions."

The second presenter, Kang Seongsu, Managing Director of the Solution Division at Korea Investment Trust Management, introduced the fund's management status over the past three years, stating, "The Korea Investment TDF Auto ETF Focus Fund aims to maximize risk-adjusted returns through global diversification and long-term, low-cost investment."

He emphasized, "The background to the 191% and 238% annual increases in fund size and total net assets over the past three years includes an optimized portfolio derived from the Long-Term Capital Market Assumptions (LTCMA) and a life-cycle asset allocation curve (glide path) reflecting investment objectives and risk management policies."

He also introduced, "The Korea Investment TDF Auto ETF Focus Fund applies an asset allocation strategy that balances returns and volatility by combining foreign equities with low correlation to the domestic stock market and domestic bonds, which serve as safe assets focused on interest rate stability and interest income."

The Korea Investment TDF Auto ETF Focus Fund is a performance-based product, and past results do not guarantee future performance. Investors should be aware that principal loss may occur depending on management outcomes.

Heewoon Park, Executive Director of the Solution Headquarters at Korea Investment Trust Management, is giving a lecture on "Withdrawal Pension Investment Methods" at a retirement pension seminar. Korea Investment Trust Management.