Kiwoom Smart Investor Dollar-Cost Averaging Fund Achieves 5% Target Return... 9th Rebalancing Executed

[Asia Economy Reporter Eunmo Koo] Kiwoom Asset Management announced on the 20th that the Kiwoom Smart Investor Dollar-Cost Averaging Fund achieved its 9th rebalancing target return of 5% on the 11th and adjusted the equity-related asset ratio to 20% (based on NAV). The fund conducted rebalancing after earning a 5% return for the first time in 30 months since the 8th rebalancing on October 31, 2017.

The Kiwoom Smart Investor Dollar-Cost Averaging Fund employs an automatic dollar-cost averaging strategy starting with a 20% allocation to equity-type Exchange Traded Funds (ETFs). When the KOSPI 200 index rises, it buys less (NAV 2%), and when it falls, it buys more (NAV 3%). This approach disperses purchase timing and lowers the average purchase price. Additionally, when the master fund achieves a 5% return, the strategy resets by adjusting the equity ETF ratio back to 20% (based on NAV), allowing the fund to realize profits and adjust the portfolio automatically without redemption procedures.

Kiwoom Asset Management noted that the KOSPI 200 index was at 333.57 points at the time of the 8th rebalancing on October 31, 2017, but at the 9th rebalancing on the 11th, the index was at 321.02 points, a lower level than the previous rebalancing, yet the 5% target return was achieved and the 9th rebalancing was executed.

A Kiwoom Asset Management official stated, “This rebalancing proved that the fund’s dollar-cost averaging strategy has lower volatility compared to direct investment in the index,” and added, “We highly recommend the Kiwoom Smart Investor Dollar-Cost Averaging Fund to investors who find it difficult to time the market, as the fund automatically follows predetermined rules to dollar-cost average equity-related assets and realizes profits automatically once a 5% return is achieved.”

This content was produced with the assistance of AI translation services.