Korea Investment Management announced on the 30th that its “Korea Investment TDF All-in-One ETF Focus Fund” series has recorded the highest returns across all vintages since its launch in November 2022.
According to fund evaluator KG Zeroin, as of the 29th, the series has achieved returns of 29.97% to 39.01% (based on the Retirement Pension Online Class), with all eight vintages ranking first in returns among all domestic Target Date Funds (TDF).
Among them, the Korea Investment TDF All-in-One ETF Focus 2060 Fund (mixed-indirect type, C-Re class) recorded the highest return at 39.01%, significantly surpassing the domestic overall TDF average return of 25.78% for the same period.
The 6-month return for this fund series is 9.38% to 12.35%, and the 1-year return is 24.03% to 33.11%. The fund series has maintained stable performance for about two years and recently surpassed 200 billion won in net assets.
Previously, Korea Investment Management was the first among domestic asset managers to announce the Long-Term Capital Market Assumptions (LTCMA) in 2023. LTCMA is a methodology that analyzes expected returns, volatility, and correlations based on over 40 years of economic indicators to find asset combinations.
As a result, it was determined that a combination of globally exposed stocks and domestic bonds is the optimal strategy. This conclusion was utilized in the asset allocation strategy of the Korea Investment TDF All-in-One ETF Focus Fund series, contributing to its excellent performance.
Especially this year, the “Golden Growth” strategy was incorporated into the LTCMA, expanding the universe to include alternative assets. Adding “gold” to the portfolio can reduce volatility and improve returns compared to cross-matching strategies.
The Golden Growth universe consists of U.S. growth stocks, domestic stocks and bonds, U.S. high-yield bonds, and gold, with overseas assets invested with currency exposure.
The Sharpe ratio (risk-adjusted return) is also excellent. The Sharpe ratio measures the excess return obtained for taking on a unit of risk, with higher values indicating better performance relative to risk. The Sharpe ratio for this TDF since its inception is 1.82 to 2.06, ranking first among all domestic TDFs.
Target Date Funds (TDF) are funds that automatically adjust the asset allocation ratio to provide stable performance until the investor’s target date (vintage), typically retirement. Initially, they maintain a high proportion of risky assets such as stocks but shift to safer assets as the target date approaches.
Korea Investment Management offers a total of eight vintage TDF products, with the Gold 2080 vintage being uniquely managed among domestic asset managers. It is available for subscription through 17 distributors, including Korea Investment & Securities, Kookmin Bank, Shinhan Bank, and KB Securities.
Hee-Woon Park, Executive Vice President of the Solutions Division at Korea Investment Management, explained, “The performance of this fund series is due to an effective asset allocation strategy through proprietary research and strict risk management,” adding, “Operating with ETFs allows for low costs and efficient diversification.”