Korea Investment Management Revises ACE Pension Investment Guidebook to Cover "Investing After Contributions"

[Financial News] With pension-account contributions rising ahead of year-end tax settlements, Korea Investment Management has released a guidebook on how to use pension accounts, from claiming tax credits to making actual investments.
Korea Investment Management said on the 1st that it had published a revised edition of the ACE Pension Investment Guidebook. The company has updated its contents annually since its first publication in 2024. This year's edition focuses on practical investment methods for claiming year-end tax credits and portfolios tailored to different investment strategies.
The guidebook includes the maximum tax credits available for different income brackets, along with a checklist for pension investors. It emphasizes that investors can make better use of their pension accounts by investing the cash held in the accounts, rather than simply depositing funds and leaving them uninvested.
It presents four strategy-based portfolios: All Weather, monthly dividend, core-plus-satellite, and growth. These portfolios reflect the fact that investors have different investment horizons and varying levels of tolerance for volatility.
The All Weather portfolio is intended for investors who prefer stable investments or are approaching the time when they will begin receiving pension benefits. The monthly dividend portfolio seeks to generate steady cash flow by receiving monthly distributions from exchange-traded funds (ETFs).
The core-plus-satellite and growth portfolios target investors who have relatively more time before they begin receiving pension benefits and are seeking capital gains. The core-plus-satellite approach adds selected growth assets to core assets that track market returns. The growth strategy focuses on assets with high long-term growth potential and seeks relatively higher expected returns and volatility among the four strategies.
Ahn Myung-hoon, head of ETF consulting at Korea Investment Management, said, "Pension-account contributions for tax credits increase in the fourth quarter as the end of the year approaches." He added, "We prepared this guidebook to ensure that contributed funds do not remain uninvested and instead lead to actual investments."
He continued, "The guidebook provides step-by-step guidance on the entire pension investment process, from making contributions and building a portfolio aligned with an investment strategy to selecting customized ETFs, making it easier for investors to understand pension investing."   

[email protected] Bae Han-geul Reporter