Korean investment trust application, begins selling growth stock investment mixed funds

Korean investment trust management companies will begin selling a hybrid fund starting April 15.
This fund will shift its asset allocation to primarily bonds once it reaches its target return.
It is designed to aim for stock growth potential while switching to more stable assets after achieving a certain return.

On the 14th, Korean investment trust management companies announced they will sell the “Korea Investment Korea-US Core Growth Focus Target Conversion Securities Investment Trust No. 2 (Bond Hybrid - Re-Indirect Type)” starting April 15.
This fund, from establishment until the target conversion, has a structure where over 50% is invested in domestic bond-related listed index funds, and less than 50% in Korea and US core growth stocks.
This approach ensures basic stability through bonds while seeking additional returns via stocks.

The core of this product is its target conversion structure.
When a 7% target return is achieved, it will sell the held stock-related assets and convert into a “bond-re- indirect type” investing in domestic short-term bonds and stable monetary securities.
In short, this is a strategy to reduce risk asset exposure and shift to lower-volatility assets once a certain return level is reached.
In an environment like the recent global stock market volatility, this structure may be accepted by investors as a diversification method.

Its strategy focuses on selecting high-growth potential sectors in the Korean and US markets.
Korean investment trust management companies explained that they have identified seven core themes leading global economic growth, and incorporated representative stocks from each sector at a 70% ratio to build a core investment portfolio.
The remaining 30% is used for secondary preferred stocks to respond to market trends.
In the domestic market, the focus is on stocks with high corporate governance improvement and shareholder return expectations, as well as export-competitiveness companies; in the US market, large tech stocks dominating the global market are the main investment targets.

The subscription deadline is April 28.
Sales are available at Kookmin Bank, Hana Bank, NongHyup Bank, and securities firms including Kyobo Securities and Kiwoom Securities.
The asset management industry states that, based on interest rate trends and stock market volatility, investors continue to show a preference for hybrid and target conversion products that can control risk, rather than purely stock funds.
This trend is likely to persist in uncertain market conditions, driven by the demand for both stability and returns.