KB Asset Management's 'OnGukmin TDF2055' Shows Excellent Mid-to-Long-Term Performance

KB Asset Management announced on the 5th that 'KB On Gukmin TDF 2055(UH)' is gaining attention in the target date fund (TDF) market for its outstanding mid- to long-term performance.

KB On Gukmin TDF 2055(UH) recorded a 3-year return of 49.88%, ranking first among all TDFs managed by asset management companies. Its 6-month and 1-year returns were also excellent at 12.94% and 24.92%, respectively. Given that TDFs are mainly used as pension investment products, mid- to long-term performance is an important criterion for investors when selecting products.

Launched in 2017, KB On Gukmin TDF is an index-type fund that automatically adjusts its portfolio according to the investor's life cycle. It has low fees and low volatility, allowing investors to expect high compound interest effects over the long term.

Interest in TDFs has increased since the full implementation of the default option for retirement pensions (pre-designated management system). Last year alone, it absorbed nearly 400 billion KRW in lump-sum funds, pushing the company's total TDF assets under management beyond 1.577 trillion KRW. According to the Korea Financial Investment Association, KB Asset Management's TDF market share rose by 0.9 percentage points (P) from 12.5% at the end of 2023 to 13.4% at the end of last year. Among the top five asset management companies in the TDF industry, KB Asset Management was the only one to increase its market share during this period.

In addition to the passive management strategy 'KB On Gukmin TDF' for conservative clients, KB Asset Management also operates the 'KB Dynamic TDF' series, which employs an active management strategy for clients with a more aggressive investment style. The 'KB Dynamic TDF' also boasts solid performance, with a 1-year return for the entire vintage approaching 15%.

Subscriptions are available through major domestic banks and securities firms, including KB Kookmin Bank, KB Securities, Shinhan Bank, NongHyup Bank, Hana Bank, Samsung Securities, Mirae Asset Securities, Korea Investment & Securities, and Daishin Securities.

Yook Dong-hwi, head of the Pension WM Division at KB Asset Management, explained, "Given the nature of TDFs as long-term investment products, the total expense ratio, a key factor in product selection, is low at around 0.360?0.605% per year." He added, "By utilizing KB Asset Management's TDF products, which have specialized management know-how based on in-house research capabilities, investors can achieve both stable returns and capital gains."

KB Asset Management offers a rich lineup of pension products, including the 'KB On Gukmin and Dynamic TDF' series, as well as the 'KB Target Return OCIO Series' and the 'KB Didim Dynamic Asset Allocation Fund,' enabling investors to build a retirement pension portfolio solely with KB Asset Management products.

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