Eugene Asset Management Launches 'Eugene Champion Performance-Linked TDF'

Eugene Asset Management, a subsidiary of Eugene Investment & Securities, announced on the 27th that it has launched the industry's first 'performance-linked TDF.' This is the first attempt to apply a performance-linked management fee structure in TDFs to strengthen management responsibility.

The 'Eugene Champion Performance-Linked TDF,' launched in two vintages, 2030 and 2040, provides an optimized solution for Korean retirees through a glide path reflecting the human capital of Koreans (Glide Path: a graph showing the proportion of stock investments until retirement). Even after retirement, it plans to manage returns and inflation risk by maintaining a certain level of stock investment proportion instead of managing only safe assets, while also investing in inflation-linked bonds.

The biggest feature of the 'Eugene Champion Performance-Linked TDF' is its management fee. First, the basic management fee is set at 60-72% of the industry average for TDFs, making it relatively low. Along with the low basic management fee, the management fee is linked to performance to strengthen responsible management. If the fund's performance exceeds the predetermined benchmark return, a positive performance management fee is added; if the performance is below the benchmark return, a negative performance management fee is applied. In cases of poor performance, the management fee can be reduced to '0.'

In addition to the traditional asset allocation strategy that adjusts the proportion of risky assets, a hedging portfolio that directly performs hedging by asset class is added to defend against losses. For example, an inverse stock index ETF is included when stock prices fall, and a volatility index-tracking ETF is included when events cause significant market shocks.

Management is handled by Eugene Asset Management’s Multi-Asset Management Office, which specializes in global asset allocation management, including the 'Eugene Champion Plain Vanilla OCIO Fund.' The manager is Jumin Geun, head of the Multi-Asset Management Office, who has managed various global funds at Franklin Templeton Investment Trust Management. The expertise of Eugene Investment & Securities’ Research Center is also added to enhance management professionalism.

Oh Chun-sik, Head of Marketing at Eugene Asset Management, said, "With the introduction of new systems such as the default option in the second half of last year, interest in pension asset investment is growing." He added, "In the case of the Eugene Champion Performance-Linked TDF, a two-dimensional investment strategy incorporating a hedging portfolio and a management fee linked to performance have been introduced. As a latecomer, we plan to strengthen responsible management to operate customers' retirement funds stably."

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