Timefolio Asset Management said its "Timefolio Top Pick EMP (ETF Managed Portfolio) Fund (fund of funds)," which builds a highly diversified portfolio using global exchange-traded funds (ETFs), has recorded a return of about 20% within one month of its launch.
According to Timefolio Asset Management on Tuesday, the fund surpassed a 20% return from its inception on December 6 through January 4. The fund tracks market trends based on macroeconomic analysis, identifies market leaders, and adjusts asset allocations in line with industry trends.
The fund's core management strategy is a "core plus satellite" approach. It allocates 60% to a "market portfolio" that tracks benchmark indices in each country and 40% to an "alpha portfolio" composed of sector-representative ETFs expected to outperform over specific periods.
Based on macroeconomic indicators, the fund divides the global business cycle into four phases — recovery, expansion, slowdown, and contraction — and adjusts allocations by up to ±20% depending on the cycle. The fund also incorporates active ETFs when excess returns over passive strategies are expected, in pursuit of outperformance.
In terms of strategic asset allocation, the fund invests in megatrend innovation technology sectors driving global industrial change, including artificial intelligence (AI), aerospace, and biotechnology. To hedge portfolio volatility, it also incorporates strategic commodity assets such as gold and copper. The fund invests more than 60% of its total trust assets primarily in equity-related ETFs, while managing risk through strategic assets depending on market conditions.
"Because portfolio managers handle complex trading decisions and rebalancing in response to market changes, the fund can relieve investors of that burden," a Timefolio Asset Management official said. "It is also a suitable product for retirement investment, as it allows pension assets to gain exposure to global innovation themes and expand opportunities."
