KCGI Asset Management Launches "KCGI Target Maturity Bond Mixed Fund No. 4" Recruitment

KCGI Asset Management, which has been making waves with its target maturity funds, announced on October 16 that it will be launching the "KCGI Target Maturity Bond Mixed Fund No. 4."

The subscription period runs until October 30. This fund is structured to invest at least 50% in bonds and up to 30% in stocks, and it will convert to a bond fund once the target return of 6% is achieved. The fund secures stability by investing more than 50% in high-quality bonds-including government bonds, monetary stabilization bonds, high-grade financial bonds, and corporate bonds (rated AA- or higher, commercial paper rated A1 or higher)-and up to 30% in domestic stocks. The investment grade is set at Level 4 (moderate risk). After achieving the 6% target return, all equity assets will be sold and the fund will be converted to a bond fund, investing only in bond-related assets. The investment grade will then be changed to Level 5 (low risk).

A representative from KCGI Asset Management explained, "Recently, as the stock market has risen sharply in a short period of time, there have been many requests from investors for target maturity funds due to concerns about market peaks and volatility, which make it difficult to time trades."

As market interest rates have recently fallen to the 2% range, requests from bank clients seeking medium-risk, medium-return products have been increasing.

Since launching its first target maturity fund in April, KCGI Asset Management has attracted 510 billion won in assets through Korea bond mixed and small-cap equity funds. The first Target Maturity [Bond Mixed] Fund raised 56 billion won, while the second and third funds attracted 276.8 billion won and 134.7 billion won, respectively. The Target Maturity Small Cap Fund drew in 43.2 billion won.

The KCGI Asset Management representative added, "We plan to secure stable returns through the inclusion of high-quality bonds and aim to achieve the target return early by leveraging the management experience of the KCGI Korea Fund in the equity segment."