Korea Investment Trust Management TDF Catches Two Rabbits at Once

[Asia Economy Reporter Hwang Yoon-joo] Korea Investment Trust Management announced on the 26th that 'Korea Investment TDF Alseora 2050 UH' ranked first in both risk management and profitability over the past three years.

According to the fund rating agency FnGuide on the 26th, 'Korea Investment TDF Alseora 2050 UH' posted a 27.73% return over the past three years (Class (C-Re)·as of the 25th). This is the highest performance among 141 domestic TDFs (with net assets over 10 billion KRW and operating period over 3 years). The 1-year and 2-year returns were -7.32% and 15.57%, respectively.

The 3-year modified Sharpe ratio (excess return relative to investment risk), which supports stable risk management capability, is also the highest at 0.47. The modified Sharpe ratio is an indicator that quantifies the degree of excess returns obtained by investing in risky assets relative to the fund's volatility. A high modified Sharpe ratio means low volatility, indicating a high likelihood of stable and good performance regardless of the investment timing.

Over the past three years, the US dollar has strengthened against the Korean won, so unhedged (UH) funds that expose assets to exchange rate fluctuations often outperform hedged (H) funds that eliminate exchange rate volatility.

Park Hee-woon, head of the Solutions Division at Korea Investment Trust Management, said, "Countries like Korea, Australia, and Canada are sensitive to the global economy and have a high export ratio, so unhedged funds carry less risk than hedged funds." He added, "On the other hand, countries like Japan, which are less sensitive to the global economy and have a high domestic consumption ratio, benefit from hedged funds in terms of risk."

Meanwhile, the ‘Korea Investment TDF Alseora Fund’ and ‘Korea Investment TDF Alseora ETF Focus Fund’ are performance dividend-type products, and past returns do not guarantee future returns. Principal loss may occur depending on management results.

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