"KCGI Freedom Qualified TDF" Net Assets Surpass KRW 500 Billion... First Among Non-Financial Group Asset Managers

KCGI Asset Management announced on April 8 that the net assets of its "KCGI Freedom Qualified TDF" series have surpassed KRW 500 billion.

According to KCGI Asset Management, the KCGI Freedom Qualified TDF series exceeded KRW 300 billion in net assets in November last year, and has increased by KRW 200 billion in just five months, surpassing KRW 500 billion. KCGI is the first asset management company not affiliated with a financial group to achieve over KRW 500 billion in net assets with its TDF products.

원본보기 아이콘

By class, the retirement pension class accounted for the largest share at 77.1%, followed by individual pension at 19.8%, and general at 3.1%. The highest subscription was for TDF2050 at 36.9%, followed by TDF2035 at 17.1%, TDF2030 at 17.0%, and TDF2045 at 16.4%, indicating a high proportion of subscribers in their 30s to 50s.

KCGI explained that the rapid increase in assets under management is due to strong returns and effective risk management. The KCGI Freedom Qualified TDF ranked within the top 20% in 1-year, 3-year, and 5-year returns out of 28 qualified TDFs. In the industry, it is generally considered excellent to rank within the top 30%.

In particular, TDFs showed stronger performance for long-term returns. According to KG Zero-in, as of March 31, the 5-year return averaged 49.5%, ranking in the top 12% (2nd place). The 1-year return was 19.1%, placing in the top 19%, and the 3-year return was 50.2%, placing in the top 21%.

The Sharpe ratio, which measures how well returns are generated for a given level of risk, also showed strong results. As of March 31, the 5-year average Sharpe ratio by vintage for the KCGI Freedom Qualified TDF was 0.59, ranking in the top 24%. The 1-year Sharpe ratio was 1.61, ranking in the top 23%.

To comprehensively analyze the positions of TDFs by asset manager in terms of returns and Sharpe ratios, KCGI created a four-quadrant chart using returns and Sharpe ratios as axes. The KCGI Freedom Qualified TDF was in the first quadrant, with both returns and Sharpe ratios above average, for the 5-year, 3-year, and 1-year periods. A KCGI Asset Management representative explained, "Being in the 'high return, high efficiency' quadrant across all periods in the chart demonstrates that we have achieved both risk management and performance."

Performance Analysis of Eligible TDF Based on KG Zero Data. KCGI Asset Management

원본보기 아이콘

The representative added, "Since the change of major shareholder to KCGI in 2023, strengthening pension asset management has been a core business objective, and we have focused on enhancing our management capabilities. By concentrating our efforts on developing and operating active and quantitative models to meet the demand for both stability and profitability in retirement funds, these results have been achieved."

Meanwhile, the KCGI Freedom Qualified TDF is a "qualified TDF" that meets the standards set by the Financial Supervisory Service, and under retirement pension supervisory regulations, is exempt from the 70% limit on investing pension assets in risky assets, allowing up to 100% of reserves to be invested.

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.