KB Asset Management's TDF tops 5-year returns among domestic peers

KB Asset Management's flagship target-date fund, KB Ongukminjeokyeok TDF 2055, has posted a return of more than 88 percent over the past five years, the best long-term performance among domestic target-date funds.

According to fund evaluator FnGuide, the KB Ongukminjeokyeok TDF 2055 (unhedged) recorded a five-year return of 88.57 percent as of Tuesday, ranking first among all 115 target-date funds operated by domestic asset managers over the same period.

The fund targets retirement in 2055 and pursues long-term asset growth by spreading investment across growth assets such as shares and defensive assets such as bonds. It applies an asset allocation strategy timed to the investor's retirement date, adjusting the balance between risk assets and safe assets in line with the investor's life stage — a defining feature of target-date funds.

The KB Ongukminjeokyeok TDF series is built on passive management, diversifying across a broad range of market assets while pursuing an asset allocation strategy suited to long-term investment. As the target retirement date approaches, the fund gradually reduces its exposure to growth assets and increases its allocation to safe assets through a glide path, adjusting the portfolio to match each investor's life stage.

Alongside the KB Ongukminjeokyeok TDF series, KB Asset Management also runs KB Dynamic TDF, a product designed to respond more actively to market volatility. KB Dynamic TDF is an actively managed fund that invests across a range of assets including real estate and raw materials, adjusting its allocation in response to market conditions.

KB Asset Management recently expanded its target-date fund lineup with the launch of KB Korea Focus Jeokyeok TDF, a product centered on domestic assets.

KB Korea Focus Jeokyeok TDF is designed to let investors actively participate in the growth and evolution of the domestic share market by layering various themes and style allocations on top of the Kospi. The addition of a domestically focused product alongside existing globally diversified offerings broadens the range of choices available to investors.

Backed by this expanded lineup, KB Asset Management's target-date funds have attracted more than 500 billion won ($361 million) in inflows so far this year. Total assets under management in its TDF range have also surpassed 2.6 trillion won.

Beom Gwang-jin, head of KB Asset Management's pension wealth management division, said the strong long-term performance of the KB Ongukminjeokyeok TDF reflects the firm's research-driven management framework and stable asset allocation capabilities. "We will continue to do our utmost so that investors can pursue long-term asset growth through KB TDF," he added.

KB Asset Management is also accelerating new product launches. On Tuesday, it introduced the RISE Samsung SK Group exchange-traded fund, which invests in major affiliates of Samsung Group and SK Group. The ETF targets the top 10 listed companies by floating market capitalization across the two groups, including Samsung Electronics and SK hynix. It tracks the KAP Samsung SK Group Index as its benchmark, holds a minimum of four stocks from each group, and caps individual stock weightings at 25 percent, with the combined weighting of the top four holdings limited to 80 percent. Distributions are paid in January, April, July and October each year. The total expense ratio is 0.15 percent per annum.