Korea Investment Management's K-Policy Beneficiary Target Conversion Fund Achieves Target Return Ahead of Schedule

Korea Investment Management announced on January 15 that the "Korea Investment Let's Join K-Policy Beneficiary Step-by-Step Purchase Target Conversion Fund," which invests in themes benefiting from government policy, has achieved its target return ahead of schedule and has been converted from a "bond-mixed fund of funds" to a "bond fund of funds."

According to fund evaluation firm FnGuide, the "Korea Investment K-Policy Beneficiary Target Conversion Fund," launched through KakaoBank at the end of November last year, recorded a cumulative return of 6.29% (A-e class, pre-tax) as of January 7. The fund surpassed its target return of 6% in just 26 trading days since inception.

This achievement is attributed to a sophisticated step-by-step purchase strategy for domestic equity ETFs expected to benefit from government policies, which proved effective in the recent market environment. By combining price and time diversification strategies, the fund was able to reduce market volatility risk while capturing upward opportunities in the KOSPI and policy beneficiary sectors, which became the main drivers for achieving the target.

With the fund reaching its target, its management structure was also reorganized. All previously held domestic equity ETFs were sold, and as of January 12, the fund was converted to a "bond fund of funds." The proportion of domestic collective investment securities related to equities, previously maintained below 50%, was reduced to 0%, and over 60% of assets were allocated to safe assets such as domestic short-term bonds and monetary stabilization bonds. This was done to reliably secure the profits already achieved and minimize management risk.

As the fund's stability increased, its risk grade was downgraded by one level from grade 4 (moderate risk) to grade 5 (low risk). In addition, to enhance investors' actual returns, the total fee, including management and sales fees, was significantly reduced from 0.54% per year to approximately 0.125% per year.

Fund redemption will proceed according to the early achievement regulations. Since the target was reached within six months of inception, redemption will be made on November 30, 2026, which marks one year from the initial setup date. Customers may withdraw their funds at any time before redemption without incurring any separate redemption fees.

Kim Donghyun, Senior Manager of the Global Quantitative Investment Division at Korea Investment Management and responsible fund manager, explained, "The early achievement of the target by the Korea Investment K-Policy Beneficiary Target Conversion Fund was thanks to the step-by-step purchase strategy that controlled the volatility of policy beneficiary themes, defending against risks in downturns and maximizing returns during rebounds."

He added, "After the conversion to a bond-type fund, we will focus our management capabilities on ensuring that customers can reliably realize the profits they have already secured through fee reductions and thorough asset management."

The Korea Investment K-Policy Beneficiary Target Conversion Fund is a performance-based product, and even after conversion to a bond-type fund, neither principal preservation nor fixed returns are guaranteed. Investors should be aware that losses may occur depending on management results.