KB Asset Management Launches KB OnGukmin Fast Start Target Asset Allocation Fund

KB Asset Management announced on May 19 that it has launched the asset allocation fund "KB OnGukmin Fast Start Target Asset Allocation Fund" targeting pre-employment investors.

With the introduction of this asset allocation fund, which allows for longer-term investment perspectives in addition to the existing Target Date Fund (TDF) that automatically adjusts asset allocation strategies according to retirement timing, investors now have a wider range of choices for pension investments.

The KB OnGukmin Fast Start Target Asset Allocation Fund is a product that applies a "glide path" to automatically adjust the portfolio according to the investor's life cycle. Assuming retirement in 2070, which is 45 years from now, it offers customized investment strategies suitable for asset management for investors with relatively long investment horizons, such as children, adolescents, and college students.

The KB OnGukmin Fast Start Target Asset Allocation Fund maintains a 100% allocation to risky assets in the initial investment stage and, starting in 2035 (10 years later), applies the glide path of the KB OnGukmin TDF to reduce the allocation to risky assets to within 80%. After that, the portfolio is automatically adjusted according to the investor's life cycle until the set retirement year of 2070.

This fund constructs a more aggressive asset allocation portfolio than existing TDFs, which focus on employment and retirement timing. In addition, since it does not apply the risky asset limit (80%) of TDFs, it can maximize long-term growth potential.

For young investors with a long time remaining until retirement, the extended future income period allows them to benefit from lowering the average purchase price through continuous dollar-cost averaging, even if the stock market declines.

Yook Donghwi, Head of Pension WM Division at KB Asset Management, stated, "The KB OnGukmin Fast Start Target Asset Allocation Fund is a balanced global diversified investment product that seeks efficient alpha (α) returns by utilizing various regional and sector ETFs according to market conditions," and added, "After 2035, we plan to build a stable asset allocation portfolio through investments in global bond ETFs."

The KB OnGukmin Fast Start Target Asset Allocation Fund is currently available for subscription at KB Securities, and the number of distributors will be expanded in the future.

KB Asset Management operates a rich lineup of pension products, including the flagship "KB OnGukmin·Dynamic TDF" series, as well as the "KB Target Return OCIO" series and the "KB Didim Dynamic Asset Allocation Fund."