Korea Investment Management Launches "Korea Investment Together K Index & Growth Theme Target Maturity Fund"

Switches to Bond Strategy Upon Achieving 7% Target Return

Korea Investment Management announced on April 20 that it will launch the "Korea Investment Together K Index & Growth Theme Target Maturity Securities Investment Trust (Bond Mixed – Fund of Funds Type)."

According to Korea Investment Management, the fund will be available for subscription from today until May 14 at NongHyup Bank, Gwangju Bank, and KakaoBank. This is a target maturity fund that switches to a bond-focused strategy once it achieves a target return of 7%. It is a closed-end product that can only be subscribed to during the offering period.

The Korea Investment Together K Index & Growth Theme Target Maturity Fund invests in major domestic indices such as KOSPI 200 and KOSDAQ 150, as well as K-growth theme companies that are expected to drive Korea’s economic growth. From the initial setup date until the target return is achieved, less than 50% of net assets are invested in ETFs that track domestic stock market indices and in ETFs listed in Korea focusing on K-growth themes. The remainder is managed in high-quality domestic short-term bond ETFs and cash equivalents for stability.

The equity investment strategy utilizes a proprietary momentum strategy. It quantitatively analyzes long-term momentum (6–12 months) and short-term momentum (1–3 months), and conducts qualitative screening through internal research to select themes with a high probability of appreciation, rebalancing the portfolio every month. This is designed to respond swiftly to changing market trends.

After the target return is achieved, the fund switches to a bond fund of funds strategy. It sells all domestic equity-related ETFs and primarily invests in ETFs focused on domestic short-term bonds or Monetary Stabilization Bonds, as well as cash and cash equivalents.

Kim Donghyun, Head of Global Quantitative Investment at Korea Investment Management and responsible fund manager, stated, "This fund, with regular rebalancing based on the momentum model, provides an efficient investment tool for individual investors who find it difficult to respond to rotational market trends," adding, "Since it converts to a bond fund of funds upon reaching its target, it is suitable for pension investors planning for the long term or those seeking stability after achieving their investment goals."

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