Kiwoom KOSPI Revaluation Target Switchable Fund Achieves Target in Just One Month After Launch

Kiwoom Asset Management announced on November 3 that the "Kiwoom KOSPI Revaluation Target Switchable Securities Investment Trust [Bond Mixed - Fund of Funds Type]" achieved its target return in just about one month after its launch on September 30.

This product was introduced in response to the government's Korea Value-Up policy, amendments to the Commercial Act leading to improved corporate governance, and an increased focus on shareholder returns, such as expanded dividends and share buybacks and cancellations. The fund demonstrated strong performance from its inception. Achieving the target return in a short period is seen as evidence that policy changes and the trend of enhanced shareholder returns by companies are translating into actual investment results.

The Korean stock market has continued to experience the so-called "Korea Discount," trading at a price-to-book ratio (PBR) of only about 50-70% compared to major global markets. Recently, with the government's push for value-up policies and amendments to the Commercial Act, an institutional foundation has been established, accelerating improvements in corporate governance and the expansion of shareholder returns.

It is analyzed that as the industrial structure shifts from intermediate goods to high value-added sectors such as consumer goods, software, and AI, and as corporate profitability gradually improves, expectations for a structural revaluation of the domestic stock market are being reflected in the market.

The fund selectively invested in companies with high return on equity (ROE) but low PBR, as well as growth stocks with sustainable profitability amid industrial transformation. In particular, its focus on companies capable of continuous ROE improvement through expanded shareholder returns, enhanced competitiveness, and efficient capital allocation contributed to delivering strong returns. After achieving the target return of 6% (based on A Class), the fund is automatically converted into a bond-fund of funds type to preserve returns.

A representative from Kiwoom Asset Management stated, "As improvements in corporate governance and the strengthening of shareholder returns among domestic companies are spreading, fundamental changes in the KOSPI are accelerating."

The representative added, "The fund offers the advantage of reducing concerns about investment timing and profit realization by focusing its compressed portfolio on companies with improved governance, stable high dividends, and low PBR, while utilizing a target-switchable structure."

Based on the strong performance of achieving its target return in about one month after launch, Kiwoom Asset Management plans to introduce a second target-switchable fund with the same strategy in the first quarter of next year.

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