KB Asset Management's 'OnGukmin TDF' Series Surpasses 1 Trillion KRW in Assets Under Management

KB Asset Management's flagship target date fund (TDF) series, ‘KB On Gukmin TDF,’ announced on the 13th that its assets under management have surpassed 1 trillion KRW.

‘KB On Gukmin TDF’ is KB Asset Management’s first TDF, launched in 2017. The recruitment of CEO Kim Young-sung, who was working at the Government Employees Pension Service, in 2016 was also aimed at developing the TDF.

Following the breakthrough of combined assets under management exceeding 1 trillion KRW with the ‘KB Dynamic TDF’ series in May last year, the single series ‘KB On Gukmin TDF’ has also surpassed 1 trillion KRW in assets under management.

Since the full implementation of the default option (pre-designated operation system), there has been a clear trend of capital inflow into ‘KB On Gukmin TDF.’ In the past year alone, 109.2 billion KRW was invested. This is thanks to consistently strong performance even in volatile market conditions.

Based on the default option class, the one-year returns of the five vintages (2035?2055) in the ‘KB On Gukmin TDF’ series have all achieved over 17% (17.39?22.56%) as of the 13th of this month, demonstrating excellent performance.

KB Asset Management is targeting the market with two product series: ‘KB On Gukmin TDF’ for conservative investors who want to maximize compound interest effects with low fees, and ‘KB Dynamic TDF’ for investors seeking active market responses.

Given that TDFs are commonly used as long-term investment products in pension accounts such as retirement pensions or individual pensions, the fees?which are a key factor in product selection?are also among the lowest. They are managed with the lowest fees (annual 0.31?0.45%) among TDF series with assets under management exceeding 100 billion KRW in the industry.

Alongside ‘KB On Gukmin TDF,’ ‘KB Dynamic TDF’ also boasts outstanding performance. Currently, 85 funds operate the industry’s default option fund exclusive class, the ‘O Class’ fund, and among the top 10 products based on one-year performance, six are KB Asset Management’s ‘KB On Gukmin·Dynamic TDF’ funds.

As of the 11th of this month, the one-year returns rank ‘KB Dynamic TDF 2050 (22.62%)’ first, followed by ‘KB On Gukmin TDF 2055 (UH) (22.56%)’ in second place, ‘KB Dynamic TDF 2040 (21.16%)’ third, and ‘KB On Gukmin TDF 2050 (21.05%)’ fourth. Sixth and eighth places are also held by ‘KB On Gukmin TDF 2045 (20.80%)’ and ‘KB On Gukmin TDF 2040 (19.70%),’ respectively.

Lee Seok-hee, Head of Pension WM Division at KB Asset Management, explained, "KB Asset Management has an optimized asset allocation fund management system based on its own research capabilities. By utilizing the On Gukmin and Dynamic TDFs, which have industry-low fees and specialized management know-how, investors can achieve both stable long-term returns and capital gains simultaneously."