Recruitment for KCGI Korea Target Maturity Bond Mixed Fund No. 2

KCGI Asset Management announced on the 16th that it is recruiting investors for the KCGI Korea Target Maturity Bond Mixed Fund No. 2.

Previously, KCGI Asset Management's KCGI Korea Target Maturity Bond Mixed Fund, which was established in April, achieved its target return early in just 55 days. The company has decided to recruit for the second fund with the same strategy until the 27th.

This fund seeks excess returns while maintaining stability by investing more than 50% in high-quality bonds such as government bonds, monetary stabilization bonds, high-grade financial bonds, and corporate bonds (bonds rated AA- or higher, short-term bonds and CP rated A1 or higher), and less than 30% in domestic equities. After achieving the target return of 6%, all equity holdings are sold and the fund is converted into a bond fund that invests only in bond-related assets. The fund name will also be changed to KCGI Korea Target Maturity Securities Investment Trust [Bond] No. 2.

When the first fund was established on April 18, a total of 56 billion KRW was raised through 10 distributors. On the 12th, the fund quickly achieved its target return with a yield of 6.15%.

For the equity portion, the fund adopts the strategy of KCGI Asset Management's flagship fund, the KCGI Korea Fund Equity Type, and implements a barbell strategy by investing in both high-quality growth stocks and value stocks. To manage volatility, the fund adjusts sector and stock weightings and monitors tracking error at an appropriate level.

A representative from KCGI Asset Management stated, "We plan to achieve the target return early by securing stable returns through high-quality bond allocation and leveraging the management experience of the KCGI Korea Fund in the equity segment."

The fund is a closed-end fund that can only be subscribed to during the recruitment period, and purchases are not allowed afterward. Unlike typical closed-end funds, which restrict redemptions before the target is achieved after the subscription period, this fund does not charge a redemption fee for early withdrawals, making fund management more convenient.