Mirae Asset Global Investments announced on the 18th that their largest domestic TDF series, the “Mirae Asset Strategic Allocation TDF,” has marked its 8th anniversary. This TDF is a flagship fund that adapts flexibly to market conditions by diversifying investments in equities, bonds, real estate, infrastructure, and other strategies. Initially launched in March 2017 for five-year intervals from 2025 to 2045, the lineup has expanded to include 2050 and 2055 and has established itself as Korea’s leading TDF, based on excellent long-term returns.
According to Zeroin, as of the 17th, the total domestic TDF asset size is 11.7 trillion KRW, with Mirae Asset’s TDF holding the top market share at 36% with 4.2 trillion KRW. Within that, the “Mirae Asset Strategic Allocation TDF” alone leads the domestic TDF market with 3.7 trillion KRW.
The flagship product, “Mirae Asset Strategic Allocation TDF 2045,” has achieved an average annual return of 12% since its launch, with an accumulated return of 97.8% over eight years. Mirae Asset Global Investments has developed asset allocation capabilities by managing TDFs directly, unlike delegated management methods, which avoid double fees, reducing costs and improving long-term returns.
Due to these achievements, Mirae Asset’s TDF continues to be a choice for many pension investors this year. Since the beginning of the year, 238 billion KRW has flowed into Mirae Asset’s TDF. This represents about 28% of the overall increase of 859.4 billion KRW in domestic TDF fund deposits this year, marking the largest growth among domestic asset management companies.
Based on their TDF management expertise, Mirae Asset plans to launch the “TIGER TDF 2045 ETF” on the 25th of this month. This will be the world’s first passive TDF ETF, investing in the US benchmark index S&P500 and domestic short-term bonds. From post-listing until 2040, it will decrease the S&P500 index proportion by 1% annually, increasing the domestic short-term bond proportion correspondingly. From 2041, five years before retirement, it will reduce the stock proportion by 5% annually, and no further adjustments will be made post-2045, the retirement target year.
Sohn Su-jin, head of ETF Pension Marketing at Mirae Asset Global Investments, stated, “In Korea, the role of private pensions like retirement pensions is very important due to the low income replacement rate of public pensions compared to advanced countries. We will continue to strive to pursue both growth and stability for long-term pension investors with the Mirae Asset Strategic Allocation TDF.”
Meanwhile, as this year approaches the target year of “Mirae Asset Strategic Allocation TDF 2025,” the target year for TDF does not imply the fund’s maturity. The fund continues to operate while maintaining a “risky stock 40%” limit. Those who do not need to withdraw immediately can manage their assets stably through the existing TDF 2025. Investors who wish to slightly increase their risky asset proportion may consider moving to a higher vintage TDF. Aimed at those approaching retirement in 2025 or investors with a stable investment tendency, “Mirae Asset Strategic Allocation TDF 2025” has recorded an accumulated performance of 56.3% over eight years and an annual return of over 7%.