Pensions Also Diversify into AI ... Korea Investment Management Launches AI Value Chain TDF

[Financial News] A target-date fund (TDF) that invests across the global artificial intelligence (AI) value chain while adjusting its allocation to risk assets in line with the retirement date has been launched. It adjusts its investment allocation as the leading areas of the AI industry shift, from semiconductors and power infrastructure to data centers and software.
Korea Investment Management Co., Ltd. announced on the 13th that it had launched the Korea Investment Pension-Eligible TDF Alaseo Global AI Value Chain Fund. The product comes in three vintages—2050, 2060 and 2070—based on the target retirement date.
The fund adjusts its allocation to risk assets as the retirement date approaches, based on Korea Investment Management’s proprietary glide path. It is also designed for use in pension investing by combining global AI-related assets with domestic bonds.
AI investments are divided into seven areas: semiconductors; power infrastructure; data centers and cloud computing; networks; agentic AI; physical AI; and information technology. The fund also includes leading indices from Korea, Taiwan and Japan, diversifying investments across the AI hardware supply chain.
The fund also employs a strategy to respond to shifts in the leading areas of the AI industry. It plans to use five indicators, including big tech capital expenditures (CAPEX), net revenue retention (NRR) and valuation gaps, to adjust its investment allocation as the growth axis shifts from infrastructure-focused upstream segments to downstream areas such as software and services.
Bond assets will primarily consist of domestic high-quality bond exchange-traded funds (ETFs). Depending on market conditions, the currency-hedging ratio for foreign-currency assets will be adjusted to below 50%.
The fund meets the eligibility requirements for TDFs under retirement pension supervisory regulations, allowing investors to allocate up to 100% of their defined-contribution (DC) retirement pension and individual retirement pension (IRP) accounts to it. It has been available through Korea Investment & Securities Co., Ltd. since today, and the company plans to expand distribution to NH NongHyup Bank, NH Investment & Securities and Shinhan Investment & Securities, among others.
Kang Seong-su, head of the Solutions Division at Korea Investment Management Co., Ltd., said, “AI is a long-term theme suited to pension investing, which requires an investment horizon of 20 to 30 years or more,” adding, “We will manage the fund to build stable retirement assets while responding to changes in the AI ecosystem and economic cycles.”
[email protected] Bae Han-geul Reporter