Kiwoom Asset Management has launched 'Kiwoom Keywordream TDF 2065', a series targeting retirement in 2065, for the first time in Korea on the 1st.
Kiwoom Keywordream TDF 2065 is the longest maturity high vintage product among the TDFs launched in the market. It is designed for long-term investors, such as those in their 20s who are new to society. The product targets investors looking to maximize long-term compounding effects or those desiring an aggressive asset allocation strategy.
In the retirement pension system, combining 70% risk assets and 30% TDF 2065 in a defined contribution (DC) type individual retirement pension (IRP) account allows for the most aggressive investment portfolio configuration within the retirement pension account. Kiwoom Asset Management noted that this could be an optimal investment alternative for investors seeking long-term high returns.
This product, which invests long-term for over 40 years, focuses on minimizing investment expenses. Kiwoom Keywordream TDF employs a management strategy of extensive diversification by selectively investing in excellent ETFs from around the world, pursuing minimal expenses. It plans to select and invest in optimal ETFs through comprehensive evaluations of revenue, expenses, and liquidity among global major asset managers such as BlackRock, Vanguard, JPMorgan, and Invesco.
Additionally, Kiwoom Keywordream TDF 2065 offers both currency-hedged (H) and unhedged (UH) sub-funds, allowing investors to choose a fund that matches their own tolerance for currency risk. The H type minimizes currency risk through 60-100% currency hedging, while the UH type can pursue opportunities for currency gains through unhedging.
A representative from Kiwoom Asset Management said, "TDF 2065 is a vintage product with the longest investment period in Korea, maximizing the effects of compounding," adding that "it will help long-term asset formation for all age groups of investors, not only those new to society but also those seeking aggressive investments."