KB Asset Management's Retirement Pension Products Stand Out

'KB Toejik Yeongeum Baedang 40 Fund' Managed for 16 Years
National TDF Approaches 1 Trillion KRW
Distinguished as OCIO Fund in DB Market Too

[Asia Economy Reporter Hwang Yoon-joo] With the implementation of the default option scheduled for the second half of the year, interest in retirement pension products is increasing.

According to the Financial Supervisory Service on the 11th, the types included in the default option are Target Date Funds (TDF), mixed funds, Money Market Funds (MMF), real estate infrastructure funds, and principal-guaranteed products.

TDFs are already well known to investors, with domestic custody assets exceeding 10 trillion won, but there is no representative product among mixed funds. The 'KB Retirement Pension Dividend 40 Fund' is a product worth attention when introducing the default option, as its long-term performance has been proven in the pension market.

KB Asset Management's 'KB Retirement Pension Dividend 40 Fund' is a bond mixed fund with a stock allocation ratio within 40%, launched in 2006 and operated for 16 years, making it a long-standing retirement pension fund. After surpassing 1 trillion won in assets under management in 2015, it has never fallen below 1 trillion won, making it a representative giant fund.

Since its inception in January 2006, the fund's return has been 192%. The recent 10-year return is 62%, nearly twice the stock market rise rate (32.8%) during the same period. Customers who subscribed to the 'KB Retirement Pension Dividend 40 Fund' 10 years ago have consistently earned a high return of over 6% annually.

Also, KB Asset Management's flagship pension product, On-Gukmin TDF, is approaching the 1 trillion won fund mark.

In addition, from April 14, the installation of the ‘DB-type Reserve Management Committee’ has become mandatory, making corporate retirement pension management more important. KB Asset Management has already proactively launched the ‘KB Target Return OCIO Fund’ for corporations, leading the industry with assets under management of 230 billion won.

After the establishment of stable funds and growth funds, steady performance has been shown even in volatile markets, and the number of subscribing corporations managing defined benefit (DB) retirement pension funds is steadily increasing.

Meanwhile, KB Asset Management has significantly reduced fees for representative index products in Korea, the U.S., and Europe, and earlier this year lowered fees for promising domestic sector ETFs to the lowest level. By utilizing KBSTAR ETFs, investors can invest at the industry's lowest fees, making it the most suitable product for retirement pensions.