KB Asset Management's 'KB On Gukmin TDF 2055' Default Option Fund Ranks First in Overall Returns

KB Asset Management's target date fund (TDF) ‘KB On Gukmin TDF 2055 (UH)’ is delivering the best performance among default option funds.

According to the financial investment industry on the 25th, last year, the default option (pre-designated management system) was fully implemented after a one-year grace period. Currently, 87 funds are managed under the exclusive 'O Class' for default option funds. Among these, 59 are TDFs, while the rest include asset allocation fund types such as pension funds, exchange-traded fund (ETF) managed portfolio (EMP) funds, and target income funds (TIF).

As of the 25th of this month, according to the fund rating company FnGuide, the one-year return of ‘KB On Gukmin TDF 2055 (UH)’ is 25.1%, ranking first among all 87 funds during the same period. Additionally, among the top 10 products based on one-year performance, as many as five are KB Asset Management’s ‘KB On Gukmin TDF’ and ‘KB Dynamic TDF’ products.

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.

Both series have recorded stable performances with all vintages achieving one-year returns above 16% (16.66% to 25.10%). Leveraging such outstanding management performance, KB Asset Management absorbed about 300 billion KRW last year, the largest amount among domestic TDF managers. Recently, the single series assets under management for ‘KB On Gukmin TDF’ also surpassed 1 trillion KRW.

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

Lee Seok-hee, head of the Pension WM Division at KB Asset Management, said, “KB Asset Management has an optimized asset allocation fund management system based on its own research capabilities. By utilizing KB 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.”