KCGI Korea Target Conversion Bond Mixed Fund Achieves Target Return Ahead of Schedule

The KCGI Korea Target Conversion Bond Mixed Fund achieved its target return of 6% just two months after its launch.

KCGI Asset Management announced on the 12th that the KCGI Korea Target Conversion Bond Mixed Fund, which was launched on April 18, recorded a return of 6.08%.

The fund has maintained stability while seeking excess returns by investing more than 50% in high-credit bonds?including government bonds, monetary stabilization bonds, high-quality financial bonds, and corporate bonds with a credit rating of AA- or higher, as well as commercial papers and short-term bonds rated A1 or higher?and up to 30% in domestic equities.

For the equity portion, the fund adopted the strategy of KCGI Asset Management’s flagship fund, the KCGI Korea Fund Equity Type, implementing a barbell strategy that invests simultaneously in high-quality growth stocks and value stocks. Upon achieving the target return, the fund will be converted into a bond fund and maintained for one year. Investors can withdraw their funds freely during this period without any redemption fees.

KCGI Asset Management stated that both existing and new clients who invested in the fund have continued to request fund subscriptions. As a result, the company will launch the 'KCGI Korea Target Conversion Bond Mixed No. 2' with the same strategy, accepting subscriptions from the 16th to the 27th.

A representative from KCGI Asset Management said, "We originally planned to achieve the target within six months to one year, but due to the continued market uptrend and the effectiveness of our equity management strategy, we were able to reach the target early."

They added, "Our flexible investment approach, which is not bound by a specific strategy, and the barbell portfolio strategy of investing in growth and value stocks at reasonable prices, proved effective."

The fund’s average equity allocation was 27%, and the contribution to returns from equities during the period was approximately 5.7%. Major investment sectors included China-related consumer industries, power infrastructure, entertainment, food manufacturing, and other K-culture related sectors.