Proprietary glide path integrated with global AI value chain concept

Long-term mega-trend investment across 7 key sectors including semiconductors and power infrastructure

[Provided by Korea Investment Trust Management]
[Provided by Korea Investment Trust Management]

Korea Investment Trust Management announced Friday the launch of a new target-date fund combining a life-cycle asset allocation strategy tailored for Korean investors with the global AI ecosystem as a long-term mega-trend.

The fund — formally named the Korea Investment Pension-Qualified TDF Alaseo Global AI Value Chain Fund (equity mixed, fund of funds) — is offered in three vintages based on target retirement years: 2050, 2060 and 2070.

The product is built on the firm's proprietary glide path system, which automatically adjusts the weighting of risk assets as the investor approaches retirement. The fund combines a diversified portfolio spanning the AI industry value chain with domestic bonds, making it a pension-focused product.

The fund breaks down the AI industry into seven layers: semiconductors, power infrastructure, data centers and cloud computing, networks, agentic AI, physical AI, and AI general (IT). It also incorporates benchmark indexes from South Korea, Taiwan and Japan — key countries in the hardware supply chain — to build an ETF universe.

The fund will employ a "leading-layer rotation strategy" to respond to structural shifts expected to unfold over 30 or more years. It plans to rebalance allocations flexibly using a quantitative model based on five checkpoints, including big tech capital expenditure trends, net revenue retention rates and valuation gaps.

The fund meets the qualified TDF requirements under pension supervision regulations, allowing investors to allocate up to 100 percent of their retirement pension accounts — both defined-contribution and individual retirement pension accounts — to the product. It became available through Korea Investment & Securities on Friday, with the firm targeting additional distribution channels including NH NongHyup Bank, NH Investment & Securities and Shinhan Securities before year-end.

Kang Seong-su, head of the solutions division at Korea Investment Trust Management, said AI is "a mega-trend that will transform the economy and labor far more broadly than the steam engine or the internet, making it the ideal theme for pension investment with a time horizon of 20 to 30 years or more."

Korea Investment Trust Management has been rolling out a range of new products recently. On Nov. 3, it listed the ACE Global Memory Semiconductor Top 3 Bond Mixed Active ETF.


yuni@heraldcorp.com