Samsung Discretionary Investment EMP Target-Conversion Fund No. 6 Launched

Automatic Investment in Domestic Bond and Theme ETFs
Switches to Bond Allocation Upon Achieving 7% Return

The "target-conversion fund," which automatically shifts to safe assets upon achieving its target return, is expected to continue its popularity into the new year following last year’s strong performance.

On January 2, Samsung Asset Management announced the launch of the "Samsung Discretionary Investment EMP Target-Conversion Fund No. 6." All of the previously launched funds, from No. 1 to No. 4, achieved their target returns early, demonstrating strong performance. The recently launched No. 5 fund attracted the largest amount of capital in the series' history, reaffirming investors’ interest.

Samsung Asset Management delivered outstanding results in the target-conversion fund market last year. Of the total 5.23 trillion won raised by all target-conversion funds established in 2025, Samsung Asset Management attracted approximately 1.63 trillion won, accounting for over 30% of the total market inflow-making it the industry leader.

The flagship product driving these results is the "Samsung Discretionary Investment EMP Target-Conversion Fund" series. The No. 5 fund, launched in October, raised 515.5 billion won, ranking first among all domestic target-conversion funds launched last year in terms of fundraising scale. The cumulative amount raised by this fund series has reached 889.4 billion won, the largest among all target-conversion fund series launched in the industry over the past five years. The fact that funds No. 1 to No. 4 all achieved their target returns early and demonstrated excellent management capabilities is seen as the key factor behind the large inflow of capital.

The No. 6 fund maintains the same strategy as its predecessor, seeking a balance between stability and profitability. It allocates more than 50% to bond ETFs and less than 50% to equity ETFs, flexibly adjusting the ratio according to market conditions. When the target return of 7% is reached, the portfolio is shifted to focus on short-term bonds and liquid assets to preserve gains. There are no separate fees for early redemption, enhancing investment convenience.

The core of the management strategy is to create an optimal portfolio that responds to market changes by balancing bonds and equities. For bonds, Samsung Asset Management uses its proprietary base rate forecasting model to determine the optimal target duration (weighted average maturity). The company pursues stable returns by adjusting the allocation among short-, medium-, and long-term bond ETFs. For equities, the fund invests in 12 sector and theme ETFs expected to benefit from government policies, such as semiconductors, secondary batteries, and AI power infrastructure. It adjusts allocations based on price momentum in line with market trends to maximize excess returns.

Lee Jungtaek, manager at Samsung Asset Management, said, "The popularity of the Discretionary Investment EMP Target-Conversion Fund series is the result of investors’ strong trust in our accumulated management experience and performance amid changing market conditions." He added, "Even in the new year, when uncertainty is expected to persist, we will strive to meet investors’ expectations through more sophisticated portfolio construction and thorough risk management."