Kiwoom Keywordream Dynamic TDF Launched

Kiwoom Asset Management announced on November 17 that it has newly launched the 'Kiwoom Keywordream Dynamic TDF' series, which flexibly adjusts asset allocation not only according to the investor's life cycle but also by taking into account the market's economic phases.

The product is available in three vintages-2040, 2050, and 2060-so investors can select according to their targeted retirement year.

Typically, a Target Date Fund (TDF) follows a 'static asset allocation glide path,' where the equity allocation is high at the outset and gradually decreases as retirement approaches, while the allocation to bonds increases.

The 'Kiwoom Keywordream Dynamic TDF' maintains a downward-sloping asset allocation curve, with equity exposure decreasing as retirement nears. However, it implements a 'dynamic asset allocation glide path' that flexibly adjusts asset weights based on market conditions and economic data through asset allocation strategies tailored to different economic cycles. Kiwoom Asset Management divides the market into four phases-recovery, expansion, contraction, and recession-using its proprietary economic cycle model, and flexibly adjusts the allocation to equities, bonds, and alternative assets accordingly.

During economic expansion, the fund increases equity exposure to maximize growth opportunities, while in a recession, it raises the allocation to bonds or cash-like assets to enhance defensiveness. In addition to simple allocation adjustments, it also employs tactical asset allocation strategies using thematic assets.

The fund takes a mid- to long-term approach to themes leading industrial paradigm shifts, consistently identifying and investing in sectors or themes expected to experience structural growth, such as artificial intelligence (AI), defense, and nuclear energy.

The TDF fund features an advanced management strategy that extends beyond the retirement date. This reflects the recent trend of an increasing retired population, highlighting the importance of sophisticated post-retirement asset management strategies in TDFs. When the retirement year arrives, the fund is designed to increase the proportion of income-generating assets, such as dividend stocks within risk assets, to ensure a stable cash flow even after retirement.

For investor convenience, the period between redemption requests and fund payouts has been shortened, improving both accessibility and user experience.

Kim Hyena, Head of Retirement Marketing at Kiwoom Asset Management, stated, "Kiwoom Keywordream Dynamic TDF is an evolved asset allocation solution that adds 'market responsiveness' to the traditional life-cycle fund. We aim to actively capture growth opportunities in favorable markets and strengthen defensiveness during downturns to pursue stable performance."

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