Korea Investment Management CEO Bae Jaekyu: "TDFs Prove Their Value Amid Market Volatility"

Korea Investment Management held a retirement pension seminar on November 5 in Yeouido, Seoul, to mark the third anniversary of the launch of the “Korea Investment TDF Alaseo ETF Focus Fund.”

Bae Jae-kyu, CEO of Korea Investment Management, emphasized the long-term investment value of TDFs and the importance of “peace of mind investing” in his opening remarks.

CEO Bae stated, “Although the domestic stock market is experiencing a sharp decline, investors who hold TDFs need not be overly concerned. The essence of TDFs lies in ‘investing that overcomes time’-a peace-of-mind asset management strategy designed to allow investors to reap the fruits of economic growth over the long term.”

He explained, “During short-term market rallies, TDFs may seem to rise more slowly, which can be frustrating. However, their true value is revealed during market downturns.” He added, “The purpose of TDFs is not to outperform the market, but to create a structure that enables consistent investing even amid volatility.”

CEO Bae also shared his personal experience as an individual investor, saying, “I myself invest about 20% of my assets in TDFs. While investing in tech stocks or individual themes can be highly volatile, TDFs demonstrate steady growth over time.”

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He also shared his thoughts on “tech investment,” a major topic in the current market. CEO Bae advised, “The center of wealth is shifting from manufacturing to advanced technology industries such as artificial intelligence (AI). In the AI era, it is important to pay attention not only to companies providing AI services, but also to those offering foundational infrastructure such as AI semiconductors.”

CEO Bae remarked, “Whenever new technologies such as railroads, the internet, or AI emerge, there are always recurring debates about bubbles. However, instead of resisting the flow of innovative technologies, it is crucial to build structures that can survive even within bubbles.”

He introduced TDFs as “the most stable and efficient long-term investment tool,” saying, “If you try to avoid market crises by holding only cash, it is difficult to succeed. What matters is building a portfolio that can withstand crises, and in this regard, TDFs are the optimal choice.”

Finally, CEO Bae explained, “The Korea Investment TDF Alaseo ETF Focus Fund maintains a high proportion of growth and tech companies within its global equity allocation, reflecting the changing trends of the times.” He added, “The ultimate goal of TDFs is to help investors stay focused despite short-term market fluctuations and find a path to wealth over the next 20 to 30 years.”

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