KCGI Target Maturity Fund No. 2 Raises 276.8 Billion KRW in Public Offering

KCGI Asset Management has attracted over 270 billion KRW in funds through its target maturity fund.

On June 30, KCGI Asset Management announced that a total of 276.8 billion KRW had been raised for the KCGI Korea Target Maturity Fund No. 2 between June 16 and June 27. This is the largest amount among public offering funds established this year. The size is five times larger than the 56 billion KRW raised for the first fund, which was launched in April.

The fund invests more than 50% in high-credit bonds such as government bonds, monetary stabilization bonds, and high-quality financial and corporate bonds, while investing no more than 30% in domestic equities, aiming for excess returns while maintaining stability. If the target return of 6% is achieved, the fund is converted to a bond-type fund.

The shift to a low interest rate environment and the upward trend in the domestic stock market have created a favorable market environment, leading to concentrated interest from high-net-worth individuals in the banking sector and financial institutions. The inflow of funds far exceeded expectations.

The main catalyst for the fund's success was the performance of the first fund, which applied the same strategy and achieved its target return of 6% in just 55 days, demonstrating the company's management capability. The fund's design, which targets both stability and profitability even amid market volatility, resonated with investors.

Within the industry, this success is being hailed as "the full-fledged return of KCGI, the prestigious name in public offering funds."

In 2014 and 2015, KCGI Asset Management launched the Korea Fund, which invested in high-quality domestic stocks and attracted 1.5 trillion KRW in market funds at the time. This achievement is noteworthy as it comes while the parent company, KCGI, is solidifying its position as a financial group following its acquisition of Hanyang Securities.

As the KCGI brand awareness has rapidly improved, funds have continued to flow into KCGI Asset Management's domestic equity funds and TDFs, resulting in a 31% year-on-year increase in assets under management based on net asset value. The strong performance of KCGI's flagship long-term fund, the KCGI Korea Fund, has played a significant role. The KCGI Korea Fund outperformed its benchmark, the composite stock price index, by 23 percentage points last year and has exceeded the benchmark for seven consecutive years.