KCGI Asset Management said on the 8th that the KCGI Freedom Qualified TDF series has surpassed 500 billion won in net worth. It is the first target date fund (TDF) by an asset manager not affiliated with a financial group.
KCGI Freedom Qualified TDF is a qualified TDF that meets the standards set by the Financial Supervisory Service, and, under retirement pension supervisory regulations, is exempt from the risky asset investment limit (70%), allowing investment of up to 100% of contributions.
By source of funds, retirement pensions were the highest at 77.1%, followed by individual pensions (19.8%) and general investment (3.1%). By vintage, TDF2050 (36.9%), TDF2035 (17.1%), TDF2030 (17.0%), and TDF2045 (16.4%) showed higher subscription shares among office workers in their 30s to 50s. Vintage refers to the planned year the customer retires.
Performance was also solid. Among 28 qualified TDFs, it ranked within the top 20% in most of the 1-year, 3-year, and 5-year returns. The 5-year return averages 49.5%, placing it in the top 12%. The 1-year return is 19.1%, in the top 19%, and the 3-year return is 50.2%, in the top 21%.
The Sharpe ratio, which indicates risk-adjusted profitability, is also at a solid level. As of the end of Mar., the 5-year average Sharpe ratio by vintage for KCGI Freedom Qualified TDF is 0.59, in the top 24%. The 1-year figure is 1.61, in the top 23%.
KCGI said this performance stems from developing and applying its own glide path optimized for the life cycle of Koreans.
A KCGI Asset Management official said, "After changing the largest shareholder to KCGI in 2023, we set strengthening pension asset management as a key business goal and have enhanced our management capabilities," adding, "Focusing on the development and management of active and quantitative models to meet client demand for both stability and profitability is translating into results."