Korea Investment Management's "Korea Investment TDF Alaseo Fund Series" Combined AUM Surpasses KRW 2 Trillion

Continued inflows from pension investors
Applying an asset allocation model tailored to domestic investors

Assets under management in Korea Investment Management's "Korea Investment TDF Alaseo Fund Series" have surpassed KRW 2 trillion.

According to fund evaluator FnGuide on October 15, the series' combined assets under management totaled KRW 2.0138 trillion as of the previous day's closing.

As the retirement pension and personal pension markets have grown in recent years, funds have continued to flow into target-date funds (TDFs), which offer stable asset allocation capabilities, contributing to growth in the assets managed by the Korea Investment TDF Alaseo Fund Series. In particular, assets under management have increased as demand for long-term investment has expanded, especially through pension accounts. Since the start of the year, assets under management in the series' retirement pension classes have risen by more than KRW 180 billion.

The continued investor interest is attributed to the series' investment performance, which has been proven over the long term. Among the funds in the series, the Korea Investment TDF Alaseo Long-Term Asset Allocation Fund posted returns of 46.97% to 48.21% over the past two years, placing it among the top performers. The fund's C-Re class returned 1.62% over the past six months and 15.66% over the past year.

The series has also demonstrated competitive risk-adjusted performance, taking volatility into account. It has received strong evaluations based on the Sharpe ratio, a key risk-adjusted performance measure. Among the funds in the series, the Korea Investment TDF Alaseo ETF Focus Fund maintained a top-tier position, with an average Sharpe ratio of 1.29 over the past three years. The Sharpe ratio measures excess return relative to risk; a higher figure indicates stronger returns for the level of risk taken and greater efficiency in generating returns for the same amount of risk.

The Korea Investment TDF Alaseo ETF Focus Fund designs its portfolio based on the long-term capital market assumptions (LTCMA) developed in-house by Korea Investment Management. It analyzes the expected returns, risk levels, and correlations of major global asset classes from a long-term perspective to determine asset allocation, and applies a glide path strategy that adjusts the proportion of risk assets in line with investors' retirement dates.

In particular, the fund seeks to balance growth and stability through an asset allocation framework that combines U.S. growth assets with domestic bonds. It also includes alternative assets such as gold to help strengthen portfolio stability during periods of heightened market volatility.

Kang Seongsu, head of the Solutions Division at Korea Investment Management, said, "Because pension investing is a very long-term undertaking that spans decades, long-term returns and consistent risk management are more important than short-term returns. We plan to support long-term investors in building their assets through an asset allocation framework designed to reflect the characteristics of domestic investors."

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