KB Asset Management Surpasses 100 Billion KRW in Default Option Assets Under Custody

KB Asset Management's default option (pre-designated operation system) fund management scale has surpassed 100 billion KRW.

KB Asset Management announced on the 17th that since the full-scale implementation of the default option (pre-designated operation system) in July last year, funds have steadily flowed in, pushing the default option fund's assets under management beyond 100 billion KRW.

This continuous increase in assets under management is thanks to stable performance in volatile markets based on a diverse lineup of default option dedicated products.

KB Asset Management offers default option dedicated products including the pension flagship products ‘OnGukmin·Dynamic TDF Series’, the ‘KB Lifetime Pension Balance Fund’ suitable for low-risk portfolio inclusion based on a low risk rating, and the ‘KB Dream Star Asset Allocation Stable Fund’ which incorporates advisory firm expertise.

Currently, these are included in 31 low-, medium-, and high-risk default option portfolios. Just last year, they were additionally selected for 7 default option portfolios.

Among them, ‘KB OnGukmin TDF2055(UH)’ recorded a one-year return of 21.46%, the highest among 85 funds belonging to the 'O Class', which is the default option fund dedicated class.

‘OnGukmin TDF (2030·2040·2050·2055)’ and ‘Dynamic TDF (2030·2040·2050)’ are also achieving double-digit one-year returns exceeding 10% across all classes.

In particular, the OnGukmin·Dynamic TDF series led by outstanding management performance absorbed the largest amount of funds among domestic asset management companies last year. It attracted 299.6 billion KRW, accounting for 80% of the total inflow into the target date fund (TDF) market in 2023.

Lee Seok-hee, Head of Pension WM Division at KB Asset Management, said, “Considering the global economic slowdown and interest rate variables, TDF will continue to be one of the important investment alternatives as an asset allocation fund this year.” He added, “Given the declining deposit interest rates, investment demand for performance-linked products among default options will continue to increase.”