Recently, "target maturity funds," which clearly present a profit target and automatically convert to safe assets upon achieving the target return, have been making waves in the public fund industry. As investors seek to reduce the fatigue of making investment decisions amid complex market conditions, target maturity funds are rapidly emerging as a new alternative investment option.
On July 7, Samsung Asset Management announced the launch of the "Samsung Automatic Investment EMP Target Maturity Fund No. 4," which automatically invests in domestic bonds and domestic theme ETFs and sets a target return of 7%.
The Samsung Automatic Investment EMP Target Maturity Fund series began with the first fund launched at KB Kookmin Bank in June last year, and all funds up to the recently established third fund in May have achieved their target returns before maturity. The third fund attracted a total of 30.6 billion KRW during its 10-business-day subscription period. It drew attention by achieving the 7% target return in just 20 business days.
The Samsung Automatic Investment EMP Target Maturity Fund No. 4 will employ the same strategy as the previous third fund. It will ensure stability by allocating more than 50% of assets to bond-type ETFs. The remainder will be invested in domestic theme and sector ETFs focused on the KOSPI200, as well as sectors with high growth potential such as shipbuilding, defense, and AI power equipment, to pursue excess returns. The fund will focus on nine sectors and themes with high growth potential and global competitiveness, while flexibly adjusting the equity investment ratio according to market conditions.
Once the 7% target return is reached, the fund will automatically convert to short-term high-quality bonds and liquid assets. Regardless of whether the target is achieved, there is no redemption fee for early withdrawal. The core of the bond investment strategy is duration adjustment based on the interest rate forecasting model of the Samsung Asset Management Investment Research Center. During economic expansion, the target duration is shortened to minimize interest rate risk, while during recession, the duration is extended to maximize returns.
Lee Jungtaek, manager at Samsung Asset Management, stated, "As market volatility has recently increased and investor concerns about uncertainty have grown, securing stability through bond-type ETFs while seeking additional returns through equity-type ETFs is an appropriate strategy."
He added, "Since all of the previously launched first to third funds achieved their target returns in a short period and earned the trust of investors, we will do our best to achieve the target early for the fourth fund as well, based on our accumulated management experience."
The fourth target maturity public fund has expanded its distributors to provide more investors with investment opportunities. Subscriptions are available until the 18th at KB Kookmin Bank, Hana Bank, Shinhan Bank, Busan Bank, and NH Investment & Securities, with the fund establishment date set for the 21st.
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