KB Asset Management Lowers Fees Again for 'KB On Gukmin TDF'

[Asia Economy Reporter Junho Hwang] KB Asset Management has further reduced the fees for its Target Date Fund (TDF) to capture the default option market for retirement pensions, which will be introduced this month. The TDF is a key product for the default option, and lowering investment costs is seen as a strategy to increase fund inflows.

KB Asset Management announced on the 6th that it will reduce the management fees for its flagship TDF, 'KB On Gukmin TDF.' The fees were lowered at the end of last year, and this marks an additional reduction within six months. After the reduction, the total fees range from 0.36% to 0.61%, which is among the lowest in the industry.

KB On Gukmin TDF is an asset allocation fund that automatically adjusts its portfolio according to the investor's life cycle. Launched in 2017, it recorded assets under management of 841.2 billion KRW as of the 30th of last month.

Lee Seokhee, Head of Pension WM Division at KB Asset Management, explained, "From a long-term perspective, we have further reduced management fees to enhance the long-term returns for defined contribution (DC) and individual retirement pension (IRP) investors."

He added, "By diversifying investments between the passive 'KB On Gukmin TDF' and the active 'KB Dynamic TDF,' investors can build a stable portfolio that further reduces investment risk."

Meanwhile, KB Asset Management is preparing to diversify its product lineup in line with the introduction of the default option by launching the 'KB Dynamic TDF Bond Mixed Type,' which has a low investment risk rating (5 levels), and the actively managed asset allocation product 'KB Target Return Active Investment OCIO' fund.

This content was produced with the assistance of AI translation services.