[2021 Asia Fund Awards] Industry's Lowest Fee 'KB On Gukmin TDF', Perfect for Long-Term Management

Reflecting Lifecycle Characteristics... TDF Tops Recent 6-Month Returns

Hyunseung Lee, CEO of KB Asset Management

[Asia Economy Reporter Minwoo Lee] In the 2021 Asia Economy Fund Awards, KB Asset Management's 'KB On Gukmin TDF' series was selected as the Best Fund in the retirement pension category.

The KB On Gukmin TDF series was highly evaluated for employing a flexible strategy that reflects lifecycle characteristics such as market conditions, life expectancy, retirement age, and wage increase rates, based on the proven lifecycle investment model of the US asset management company Vanguard. Vanguard is the leading manager in the US target date fund (TDF) market, which is worth 1,900 trillion KRW, holding about 37% market share.

Its industry-low fees were also cited as a strength. The total fees including fees of the underlying invested funds are also lower than the industry average, at about 0.09% per year. Since domestic TDFs are fund-of-funds, even if there is little difference for short-term investments, fees can significantly differ due to compound effects over long-term investments of more than 10 years.

The returns were also excellent. The ‘KB On Gukmin TDF 2050’, which has the highest equity ratio, recorded a 6-month return of 23%, ranking first among TDFs of the same type. It was more than 4 percentage points ahead of the second-ranked fund.

Youngsung Kim, Executive Director of Global Operations at KB Asset Management, said, "'KB On Gukmin TDF' is the most suitable product for the upcoming default option system for retirement pensions," adding, "It is an essential asset allocation pension fund to prepare for the 100-year life era."

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