KB Asset Management Maximizes Diversification Effect... Achieves 23% Return, Ranked 1st

2022 Asia Fund Awards - Selected Best Manager for TDF Equity Hybrid Type

[Asia Economy Reporter Hwang Yoon-joo] The performance of KB Asset Management's ‘KB On Gukmin TDF’ stands out. As of the end of last year, KB On Gukmin TDF 2055 recorded the highest return of 23% among all target date funds (TDFs).

This is because its global coverage is more than 10 percentage points higher than other companies' TDFs, maximizing the effect of diversified investment. It enhances stability by excluding high-risk assets such as crude oil, gold, hedge funds, and high-yield bonds. By investing without concentration on specific themes, it delivers stable and consistent returns across various market phases.

Since TDFs launched domestically so far are managed as fund-of-funds, the fee differences of the underlying funds should not be overlooked. Considering long-term investments of at least 10 years, significant differences arise due to the compound interest effect. Not only the fees of the underlying funds but also at the beginning of 2022, KB Asset Management lowered TDF fees to the industry's lowest level.

As a pension product, stable return management is also very important. As of the end of last year, KB On Gukmin TDF 2055 had the highest one-year return of 23.1% among all TDF products. This exceeds the average return of the 2055 and 2050 series, which have a high equity ratio, by 7.7 percentage points.

Additionally, following the appointment of CEO Lee Hyun-seung last year, along with excellent performance and efforts to target the pension market, ‘KB On Gukmin TDF’ is approaching the 1 trillion KRW mark with net assets around 970 billion KRW.