KCGI Asset Management said on the 6th it launched the life-cycle funds for people in their 20s and 30s, "KCGI Freedom TDF 2055·2060."
TDF is short for target date fund, a pension-focused fund that allocates assets by gradually reducing the share of risky assets and increasing the share of safe assets in line with the designed year (vintage) based on the expected retirement time. KCGI Freedom TDF 2055·2060 sets 2055 and 2060, respectively, as the retirement target dates.
KCGI Asset Management applied its in-house developed "KCGI Glide Path" to this product, reflecting domestic investors' life-cycle characteristics and risk preferences. At inception, the fund allocates about 77%–78% to equity master funds, then gradually lowers the equity share to 33% as retirement approaches while expanding the bond share to 67%.
KCGI Asset Management also said it seeks stability by using nine strategic funds to allocate assets not only to domestic stocks but also to stocks and bonds across major global regions including the United States, Europe, Asia, and emerging markets, as well as REITs (real estate).
KCGI Asset Management's existing Freedom TDF series has remained in the industry's upper tier based on five-year cumulative returns since inception. The annualized return of KCGI Freedom TDF 2030·2035, launched in Oct. 2020, is in the 6%–7% range.
A KCGI Asset Management official said, "KCGI Freedom TDF 2055·2060 is not simply a high-risk fund with a high equity weighting but is designed to systematically reduce risk in line with the life cycle," and added, "It will establish itself as a 'responsible life-cycle investment solution' that grows customers' retirement assets over the long term."
KCGI Freedom TDF 2055·2060 carries an investment risk level of grade 3 (somewhat high risk). Total fees, based on the pension savings (C-Pe) class, are 0.622% for 2055 and 0.652% for 2060.