KCGI Asset Management announced on the 30th that a total of 276.8 billion won had flowed into the 'KCGI Korea Target Conversion Fund [Bond Mixed] No. 2' (No. 2 fund). This is the result of fundraising conducted through 16 sales companies from the 16th to the 27th. This is nearly five times the initial setting amount of 56 billion won for the No. 1 fund launched in April. It is also the largest among public funds established this year.
The No. 2 fund is a fund that invests more than 50% in high-quality bonds, such as government bonds, monetary stabilization bonds, high-quality financial bonds, and corporate bonds, and invests less than 30% in domestic stocks, aiming to maintain stability while pursuing excess revenue. It will be converted to a bond type upon achieving a target revenue of 6%. KCGI Asset Management analyzed that the influx of funds from high-net-worth individuals and financial institutions in the banking sector was due to favorable market conditions, such as the shift to a low-interest-rate trend and the rise in the domestic stock market.
KCGI Asset Management noted that the early achievement of the target revenue (6%) by the No. 1 fund, which adopted the same strategy, within 55 days is also a background for the popularity of the No. 2 fund. A representative from KCGI Asset Management explained, "The product design targeting both stability and revenue amid market volatility has garnered investor response, and the demonstration of management capability acted as a catalyst."
KCGI Asset Management established itself as a 'public fund powerhouse' by launching the 'Korea Fund' that invests in high-quality domestic stocks in 2014. This was thanks to attracting 1.5 trillion won in funds at that time. The KCGI Korea Fund has recently achieved performance exceeding the benchmark, the Composite Stock Price Index, for seven consecutive years. Last year, the excess revenue rate against the benchmark was 23 percentage points.