Hantoo Asset Management, Korea Investment TDF Alseorae ETF Focus 2060, No.1 Domestic TDF Yield

Korea Investment Trust Management announced on the 11th that the Korea Investment TDF Alseora ETF Focus 2060 fund recorded the highest year-to-date return among domestic target date funds (TDFs).

According to Fund Guide, as of the 8th, the Korea Investment TDF Alseora ETF Focus 2060 posted a year-to-date return of 20.66%. The Korea Investment TDF Alseora ETF Focus 2055 followed in second place with 20.21%. These figures exceed the average return of domestic TDFs during the same period, which was 10.31%. The recent 6-month and 1-year returns for the two products are 6.43%, 6.20% (6 months) and 14.31%, 14.12% (1 year), respectively.

The Korea Investment TDF Alseora ETF Focus fund is a lifecycle fund that automatically adjusts its portfolio according to the retirement timeline to provide investors with stable performance until retirement. Launched on October 5, 2022, the Korea Investment TDF Alseora ETF Focus fund offers a total of seven vintage lineups, including the 2060 vintage. The 2060 vintage targets investors planning to retire in 2060, mainly those in their 30s (the 2030 generation). Currently, Korea Investment Trust Management is the only domestic asset management company to offer the 2060 vintage.

Korea Investment Trust Management attributed the fund’s excellent performance to effective asset allocation based on its own research. This year, to minimize volatility and maximize returns, it became the first domestic asset management company to announce the Long-Term Capital Market Assumptions (LTCMA). LTCMA is a methodology that analyzes expected returns, volatility, and correlations by asset class based on over 40 years of economic data to find the optimal asset mix. Through this, Korea Investment Trust Management concluded that a combination of currency-exposed U.S. growth stocks and domestic bonds is the optimal strategy and reflected this in the TDF.

The Korea Investment TDF Alseora ETF Focus 2060 also shows excellent risk-adjusted returns, as indicated by its Sharpe ratio, which measures stable risk management ability. The Sharpe ratio measures the excess return earned per unit of risk, with a higher ratio indicating stable performance despite market fluctuations. This TDF’s Sharpe ratio is 0.81, surpassing the average Sharpe ratio of all TDFs, which is 0.25.

Park Hee-woon, head of the Solutions Division at Korea Investment Trust Management, said, “It is a very notable event that the returns of the pension-specialized TDF exceed both the global stock market return (15.35%) and the KOSPI index return (12.58%). The Korea Investment TDF Alseora ETF Focus fund’s differentiation lies in delivering performance through effective asset allocation strategies based on proprietary research and strict risk management.”

Meanwhile, the ‘Korea Investment TDF Alseora ETF Focus fund’ is a performance-linked product, 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.