Hantoo Asset Management's 'Korea Investment TDF Alseora ETF Focus' Achieves 20%+ Return Last Year

Korea Investment Trust Management announced on the 4th that the average return of the ‘Korea Investment TDF Alseora ETF Focus’ series surpassed 20% throughout 2023.

According to Fund Guide, as of December 28 last year, the one-year average return of the seven vintages (retirement target dates) in the Korea Investment TDF Alseora ETF Focus series recorded 20.42%.

During the same period, the annual average return of domestic target date funds (TDFs) was only 13.47%. Notably, the Korea Investment TDF Alseora ETF Focus series was the only product whose average annual return across all vintages exceeded 20%. The Korea Investment TDF Alseora ETF Focus fund also led each of the seven individual vintages with returns ranging from 17.05% to 23.04%.

The Korea Investment TDF Alseora ETF Focus also ranked first in risk-adjusted returns (Sharpe ratio) during the same period, with all vintages scoring between 1.90 and 1.95. The Sharpe ratio is an indicator measuring the excess return earned per unit of risk taken, with a higher value indicating better performance relative to the same level of risk.

The outstanding performance stemmed from its proprietary research capabilities. In January last year, Korea Investment Trust Management became the first domestic asset management company to publish the Long Term Capital Market Assumption (LTCMA). CMA is a tool used to derive optimal asset allocation, and LTCMA is the result of analyzing economic cycles spanning over 40 years. Based on LTCMA analysis, the Korea Investment TDF Alseora ETF Focus allocated assets into a combination of globally growth-oriented stocks with currency exposure optimized for Korean won investors and domestic bonds.

Park Hee-woon, Head of Solutions at Korea Investment Trust Management, said, “Last year, Korea Investment Trust Management’s TDF achieved excellent performance based on its research capabilities. It is very noteworthy that the average annual return across all vintages of TDF, a long-term investment product specialized for pensions, exceeded 20%.”

He added, “This year as well, Korea Investment Trust Management’s TDF will focus on long-term performance for investors’ retirement funds through effective asset allocation strategies based on proprietary research and strict risk management.”

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