KCGI Management Launches Korea Target Convertible Bond Mixed Fund

KCGI Asset Management announced on the 8th that it is recruiting for the 'KCGI Korea Target Convertible Bond Mixed Fund,' which primarily invests in bonds while allocating some funds to stocks, and converts into a bond-type fund upon achieving a target return of 6%, until the 18th.

The fund invests more than 50% in high-credit-rated bonds such as government bonds, Monetary Stabilization Bonds, high-quality financial bonds, and corporate bonds (bonds rated AA- or higher, commercial paper, CP rated A1 or higher), and up to 30% in domestic stocks, aiming for stability while pursuing excess returns. Once the target return of 6% is achieved, it converts to invest entirely in bond-related assets to pursue stable income.

A KCGI Asset Management official stated, "In the current situation where stock market volatility is increasing, securing stability through bonds while seeking stock investment returns is considered a market-appropriate strategy." He added, "In line with this strategy, we will secure stable returns by incorporating high-quality bonds and leverage the management experience of the KCGI Korea Fund in the equity segment to achieve the target return early."

It is notable that the fund utilizes the management strategy of the KCGI Korea Fund, KCGI Asset Management's flagship and long-standing fund that has recorded differentiated returns. The KCGI Korea Fund outperformed its benchmark, the Composite Stock Price Index, by 23 percentage points (P) last year. It has exceeded its benchmark for seven consecutive years recently and received a major domestic fund award this year.

A KCGI management official explained, "We aim for flexible investment without being bound to a specific strategy and have achieved excess returns compared to the market by employing a barbell portfolio strategy that simultaneously invests in growth and value stocks at reasonable price levels, and we will maintain this strategy."

This is a unit-type fund that can only be subscribed to during the recruitment period, and purchases are not possible after the recruitment period. Generally, unit-type funds restrict redemptions before achieving the target after the recruitment period. It has the advantage of convenient fund management as no redemption fees are charged for early redemptions.

After achieving the target return of 6%, the stock allocation ratio will be operated at 0%, investing only in bond-related assets, and the fund name will change to 'KCGI Korea Target Convertible Securities Investment Trust [Bond].' The fund investment grade is 4 (moderate risk), and after the operation conversion date, it will change to grade 5 (low risk).

Subscriptions are available until the 18th through Kookmin Bank, Mirae Asset Securities, Samsung Securities, Eugene Investment & Securities, Kiwoom Securities, Hanwha Investment & Securities, IM Securities, KB Securities, KCGI Asset Management, NH Investment & Securities, and others.