Korea Investment Management Launches 'Korea Investment Pension-Qualified TDF Alaseo Global AI Value Chain' Fund

Korea Investment Management has launched a pension-focused fund that combines a lifecycle asset allocation strategy aligned with investors' target retirement dates with investment in the global artificial intelligence (AI) ecosystem, a long-term megatrend.

On the 13th, Korea Investment Management announced the launch of the “Korea Investment Pension-Qualified TDF Alaseo Global AI Value Chain Fund (Equity Mixed - Fund of Funds).” The product is available in three vintages based on target retirement dates: 2050, 2060, and 2070.

The fund is based on Korea Investment Management's proprietary glide path, which gradually reduces the proportion of risk assets as the target retirement date approaches. It combines a global AI industry value chain portfolio with high-quality domestic bonds.

The fund is designed to capture the benefits of continuous growth across the AI ecosystem without concentrating investments in any one company or field. It divides the AI industry into seven layers: semiconductors; power infrastructure; data centers and cloud computing; networks; agentic AI; physical AI; and general AI (information technology). It has also built an exchange-traded fund (ETF) universe by adding representative indexes from South Korea, Taiwan, and Japan, key countries in the hardware supply chain.

The fund has also adopted a “leading-layer rotation strategy” to respond to long-term structural changes. The strategy reflects the view that, as with the spread of the internet and smartphones, the AI industry's growth engine will shift from the initial infrastructure-building (upstream) stage to the software and services (downstream) stage, where substantial value will be created. The fund will use a quantitative analysis model based on five key indicators, including capital expenditure (CAPEX) trends at big tech companies, net revenue retention (NRR), and valuation gaps, to flexibly adjust the weight of leading sectors over time.

For portfolio stability, the fund invests in high-quality domestic bond ETFs suited to managing interest rate and exchange rate volatility. For foreign-currency assets, it will flexibly manage the currency hedging ratio below 50%, depending on market conditions.

The fund is available in various share classes, including retirement pension and personal pension classes, allowing investors to choose one suited to their circumstances. It meets the requirements for a qualified target-date fund (TDF) under retirement pension supervisory regulations, enabling investors to allocate up to 100% of their defined contribution (DC) or individual retirement pension (IRP) accounts to it. Subscriptions have been available through Korea Investment & Securities since the 13th. The company is working to add NH Nonghyup Bank, NH Investment & Securities, Shinhan Securities, and other distributors, with sales targeted to begin within the year.

Kang Sungsoo, head of the Solutions Division at Korea Investment Management, said, “AI is a megatrend that will transform the economy and the world of work on a far greater scale than the steam engine or the internet, making it an ideal theme for pension investments that require a long-term horizon of 20 to 30 years or more. We will bring together our investment capabilities and do our utmost to help investors build stable pension assets that can withstand shifts in the balance of power within the AI ecosystem and changing economic cycles.”

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