Hantoo Asset Management's TDF Alseo ETF Focus Fund Series Surpasses 500 Billion KRW in Net Assets

Korea Investment Trust Management announced on the 19th that the net asset value of the Korea Investment TDF Al-Sero ETF Focus Fund series has surpassed 500 billion KRW.

According to the fund rating agency KG Zero-in, as of the closing price on the 18th, the net asset value of the Korea Investment TDF Al-Sero ETF Focus Fund series was 534.5 billion KRW, representing a 654.94% growth compared to the same period last year.

The amount set was 372.9 billion KRW, increasing by more than 100 billion KRW since the beginning of the year. The Korea Investment TDF Al-Sero ETF Focus Fund 2060 had a set amount of 120.6 billion KRW, increasing by 36.3 billion KRW since the start of the year, recording the highest inflow among all domestic TDF 2060 vintages.

The recent increase in net asset value is attributed to the Korea Investment TDF Al-Sero ETF Focus Fund series consistently maintaining high returns since its launch. As of the 18th, the 1-year return of the fund series (based on the retirement pension online class) was between 17.68% and 24.33%, ranking first among all vintages. The 6-month return ranged from 8.96% to 13.07%.

The Korea Investment TDF Al-Sero ETF Focus Fund series is based on the Long-Term Capital Market Assumptions (LTCMA), a core investment philosophy for domestic investors. LTCMA is the result of analyzing global economic cycles over more than 40 years and determines the expected returns, volatility, and correlations among asset classes necessary for constructing an optimal asset allocation portfolio.

It employs an asset allocation method based on a cross-matching strategy, primarily investing in U.S. growth stocks and domestic bonds, and is managed with currency exposure. From a diversification perspective, the allocation to safe assets such as gold and domestic bonds, which have low correlation with global risk assets, has been expanded. Last year, gold and domestic bonds showed high returns within the asset classes, enhancing the fund's performance.

The fund series focuses intensively on investing in exchange-traded funds (ETFs), aiming for low risk, low turnover, and low costs, with an emphasis on improving compound returns important for pension investments. Additionally, the Korea Investment TDF Al-Sero Gold 2080 Fund, the only 2080 vintage in Korea, recorded a recent 6-month return of 17.89% based on the retirement pension online class. It set the initial risk asset allocation at 99%, reflecting diverse investment needs.

It also showed excellent results in the Sharpe ratio, a representative risk-adjusted return metric. The Sharpe ratio measures returns relative to investment risk, with higher values indicating lower volatility, which is important for long-term investments such as pensions. The Korea Investment TDF Al-Sero ETF Focus Fund series recorded a 1-year Sharpe ratio of 2.00 to 2.17, ranking first among all vintages since its launch.

Hee-woon Park, Executive Director of the Solutions Division at Korea Investment Trust Management, said, "We have independently established a rational asset allocation process such as LTCMA and glide path, managing the fund to continuously improve risk-adjusted returns. Thanks to this, we were able to reduce uncertainty regarding investment timing and achieve excellent performance."

He added, "TDFs are suitable investment products for pension investments, offering compound effects over long-term investments. Since these are products for long-term investment, it is important to compare fund returns and Sharpe ratios."

This product is a performance-based dividend type, 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.