Kiwoom Asset Management Switches to Self-Managed TDF... "Developing Glide Path"

[Asia Economy Reporter Minji Lee] Kiwoom Asset Management announced on the 1st that it will switch its TDF (Target Date Fund) to direct management without consulting overseas asset management firms.

Since June 2018, Kiwoom Asset Management has been operating the "Kiwoom Kiwo Dream TDF" with advice from the US global asset management firm SSGA (State Street Global Advisor, Limited).

SSGA has provided Kiwoom Asset Management with the glide path, an essential element for TDF management. The glide path is a kind of blueprint that adjusts the asset allocation between stocks, bonds, and other assets according to the investor's age group. Based on the glide path, the TDF gradually reduces the proportion of risky assets and increases the proportion of safe assets in line with the investor's retirement timing.

Kiwoom Asset Management plans to apply a self-developed glide path model to overcome several limitations of the glide path provided by the overseas management firm. The company stated, "The glide path from the overseas management firm is like a black box with restricted information access, and the portfolio inevitably concentrates on the funds of the overseas management firm with which advisory or consignment contracts have been signed. We have independently developed the core glide path model of the TDF with advice from Professor Juho Sung of Kyung Hee University."

The self-developed glide path model is the first in Korea to reflect investors' behavioral finance characteristics (loss aversion tendency), thereby reducing volatility. Additionally, the model is regularly updated with basic data such as market indicators and demographic statistics to stay current, allowing more flexible responses to changes in macro and market conditions. Currently, the Kiwoom Kiwo Dream TDF continues to deliver excellent performance. It ranks first in one-year returns among domestic TDFs in the 2025, 2030, 2035, and 2040 vintages.

Cheolmin Han, a portfolio manager at Kiwoom Asset Management, said, "We have accumulated sufficient know-how in TDF management over the past three years since the TDF was established. We will faithfully adhere to three TDF management philosophies?faithful investment to the model, discovery of excellent low-cost investment assets, and continuous alpha generation through steady macro analysis?to consistently achieve good results."

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