Korea Investment MySuper Automatic Fund Series Sees AUM Increase by 100 Billion Won Since Start of Year

Korea Investment Management announced on December 18 that the cumulative assets under management (AUM) of the Korea Investment MySuper Automatic Fund series have increased by more than 100 billion won since the beginning of the year, continuing a steady growth trend.

According to fund evaluation firm FnGuide, the Korea Investment MySuper Automatic Fund series attracted 106 billion won in new investments this year. The Korea Investment MySuper Automatic Growth Fund and the Korea Investment MySuper Automatic Stable Fund saw their AUM increase by 62.7 billion won and 43.3 billion won, respectively, supporting the overall growth of the series.

This expansion in fund inflows is underpinned by stable management performance. Within the series, the Korea Investment MySuper Automatic Growth Fund’s retirement pension online class (C-Re) recorded a one-year return of 26.71%, ranking among the top domestic balanced funds (BF). Its cumulative three-year return also reached an impressive 98.03%. The default option (pre-designated management method) portfolio, 'Korea Investment Securities Default Option Aggressive Investment Type BF1,' which is 100% allocated to this fund, also demonstrated its competitiveness by achieving the highest one-year return of 32.83% in the default option status report announced by the Ministry of Employment and Labor.

The Korea Investment MySuper Automatic Fund series is an asset allocation product with the investment objective of 'achieving returns in excess of consumer price inflation.' It is the first in Korea to benchmark the 'MySuper' structure, a representative default option in the Australian retirement pension system.

The fund offers a globally diversified asset allocation portfolio optimized for Korean won investors. By considering the correlation with consumer price inflation and diversifying investments across Australian equities, large-cap US growth stocks, alternative assets, and domestic bonds, the fund aims to achieve long-term returns in excess of consumer price inflation.

Kang Sungsoo, Managing Director in charge of solutions at Korea Investment Management, stated, "Although the size of retirement pension reserves is growing rapidly, the reality is that the proportion of principal-guaranteed products remains high. To preserve the real value of assets after retirement, it is crucial to defend against inflation and maintain real purchasing power."

He added, "This fund series is a product that seeks to reduce volatility and pursue long-term excess returns by diversifying investments in assets linked to inflation, making it a suitable alternative for investors seeking stable management of their retirement funds."

The fund is a performance-based product, and past management performance does not guarantee future returns. Principal losses may occur depending on market conditions.