Korea Investment & Securities Ranks No.1 in Default Option Returns for Retirement Pensions

Korea Investment & Securities, a subsidiary of Korea Financial Group, announced that its 'Default Option High-Risk BF1' recorded the highest one-year return among all related products in the 2024 Q1 retirement pension default option (pre-designated management method) major status disclosure announced by the Ministry of Employment and Labor on the 16th.

Exterior view of Korea Investment & Securities headquarters. (Provided by Korea Investment & Securities)

The retirement pension default option is a system where, if subscribers do not designate a product to manage their accumulated funds, the funds are automatically managed through a pre-determined product. As of the end of Q1 this year, 41 retirement pension providers operate a total of 309 default option products.

According to the Ministry of Employment and Labor, Korea Investment & Securities' 'Default Option High-Risk BF1' achieved a one-year return of 22.87%, ranking first among all default options of all providers. Its recent one-month return was also the highest at 4.86%, and the three-month return recorded 10.91%.

Default Option High-Risk BF1 includes and operates the ‘Korea Investment MySuper Automatic Growth Type’ fund, benchmarked after Australia’s advanced retirement pension default option MySuper. It sets investment goals considering long-term inflation rates to secure the real purchasing power of retirement funds and diversifies investments across various global assets such as stocks and bonds according to market conditions.

Hong Deok-gyu, Head of the Retirement Pension Division, said, "We were able to achieve high returns through Korea Investment & Securities’ long-accumulated capabilities in selecting and managing retirement pension products," adding, "In line with the purpose of introducing the default option, we will continue to support customers’ stable retirement preparation through differentiated management and return rate control."