"Target date funds (TDF) will become the mainstream in the investment market in the future. They are basic investment products that must be included in a portfolio and are optimal for long-term investment."
Bae Jae-kyu, president of Korea Investment Trust Management, noted on the 11th during the 'ACE Asset Allocation (TDF) Investment Seminar' held at the Grand Ballroom of the Conrad Hotel in Yeouido, Seoul, that "TDF has established itself as a key product for successful pension investment."
A TDF is a fund that manages assets according to the retirement timeline set by the participant. It utilizes a glide path method that increases the proportion of risky assets in the early stages when retirement is far away, and then increases the proportion of safe assets as the retirement date approaches.
At the seminar, Professor Kim Jang-ho from Korea University's Graduate School of Technology Management and Kwon Sung-soo, executive director of Hanwha Asset Management, gave presentations.
Professor Kim explained the portfolio theory and asset allocation for long-term investment, as well as technological innovations. He stated, "To prepare for retirement funding, long-term investment and periodic asset allocation are the most important, and since the optimal portfolio varies according to the investor's disposition, it is essential to consider both the investment 'goal (Why)' and the 'method (How).'"
Professor Kim mentioned, "TDF can reflect consumption goals and personalized designs through glide path planning, making it a highly applicable investment tool, and further research reflecting the life cycle will be active in the future."
Kwon Sung-soo, who delivered the second presentation, explained, "TDF is an attractive pension investment product that offers the convenience of automatically adjusting risk."
Kwon emphasized that "the newly launched TDF ETF series combines the advantages of TDF and ETFs, offering low expenses, trading convenience, high redemption rates, and transparent asset history verification."
He added, "(ACE TDF ETF) primarily diversifies investments into U.S. growth stocks, domestic bonds, and gold," stating, "Gold has a low correlation with stocks and offers superior real yield compared to bonds, making it essential to apply an asset allocation strategy that actively utilizes gold."