Samsung Asset Management's "KODEX TDF ETF Series" Surpasses 1 Trillion Won in Net Assets Across Four Products

Samsung Asset Management announced on May 19 that the combined net assets of its "KODEX TDF Active" exchange-traded fund (ETF) series, comprising four products, have surpassed 1 trillion won.

As of the market close on May 18, the total net assets of the four KODEX TDF Active ETF products reached 1.009 trillion won.

Looking at the net assets by product, "KODEX TDF 2050 Active Qualified" led the growth with 612.4 billion won. This was followed by "KODEX TDF 2060 Active Qualified" with 159.7 billion won, "KODEX TDF 2040 Active Qualified" with 153.2 billion won, and "KODEX TDF 2030 Active Qualified" with 83.6 billion won. It is notable that funds have flowed mainly into ETFs with a relatively long time remaining until retirement.

This strong performance is the result of meeting the needs of "smart investors" who value convenience and transparency. Investors can check their portfolios transparently on a daily basis and trade in real time, and the low management fees are accelerating the inflow of funds into ETFs. Samsung Asset Management previously took the lead in the market in 2022 by being the first in the industry to list a target date fund (TDF) in ETF form.

Jeon Yongwoo, Head of Pension OCIO Division at Samsung Asset Management, said, "The fact that the KODEX TDF series has surpassed 1 trillion won in net assets proves the efficiency and stability of TDF products in ETF form," adding, "The institutional advantage of being able to invest 100% of assets from retirement pension accounts, combined with the automatic asset allocation capability of TDFs, is providing individual investors with the most convenient yet powerful pension solution."

The management strategy has also become more sophisticated. In the equity segment, the portfolio includes not only global benchmark indices but also global leading themes and competitive domestic themes. In the bond segment, risk management has been further enhanced by flexibly adjusting the duration in response to interest rate volatility.

In addition, to maximize consistency and expertise in TDF management, the products are exclusively managed by a division specializing in asset allocation and multi-asset investment. As a result, the stability of the glide path (asset allocation curve), which extends for decades until retirement, has been enhanced, and a more organic global asset allocation strategy can be implemented.

The most distinctive feature of the KODEX TDF series is that 100% of assets can be invested in retirement pension (DC) and individual retirement pension (IRP) accounts without any limit. Under current regulations, investment in regular risk assets within retirement pension accounts is limited to 70%, but these products have been approved as "qualified TDFs" under regulatory standards, allowing the entire 30% portion for safe assets to be fully invested as well.

Samsung Asset Management plans to further strengthen its capabilities in managing ETF-based pension products following the milestone of surpassing 1 trillion won. A company representative stated, "We will continue to support KODEX TDF in establishing itself as the essential standard solution for pension investment for investors seeking to preserve and grow their pension assets in a rapidly changing global market environment."

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