Target rate of return
KTCU is making the utmost efforts for the mid- and long-term operational rate of return of assets to achieve "additional rate of return to accomplish interest rates ＋ rate of operating expenses ＋ target rate of reserves."
Management Information Asset Management Related Standards
Risk tolerance limit
Total annual risk tolerance limit is indicated by estimated risk amount of total loss according to annual asset allocation plan if estimated risk mount of net loss according to annual asset allocation plan is no more than annual transferred reserves.
Risk tolerance limit
Shortfall Risk
Strategic asset allocation
Market risk level
Credit risk level
Total risk limit
Mid- and long-term asset allocation is established in consideration of the following risk tolerance limit.
Shortfall risk for the next 5 years < 10%
The percentage of reserved fund rate to be reduced by 10% or above comparedto the base year according to asset allocation plan must be 5% or below
Mid-and Long-term Asset Allocation
- KTCU manages assets for investment by dividing them into financial assets(stocks, bonds, alternative investment, etc.), members loans, and others(tangilble/intangible assets, etc.)
- KTCU implements asset allocation based on target rate of return and risk tolerance limit set in consideration of asset characteristics and manages assets accordingly.
- Current mid-/long-term asset allocation status: 77% in fund management assets, 18% in member loans, 5% in other assets
- Current fund management assets distribution status (weight: compared to fund management assets)
| Domestic stocks |
Foreign stocks |
Domestic bonds |
Foreign bonds |
Domestic corporate finance |
Foreign corporate finance |
Domestic real estate & soc |
Foreign real estate & soc |
|---|---|---|---|---|---|---|---|
| 8.2% | 9.0% | 7.4% | 5.4% | 10.1% | 15.5% | 14.9% | 29.5% |
The weight of asset allocation is based on financial portfolio(by 2027)
- KTCU manages assets flexibility by deliberating mid- and long-term asset allocation plans through Asset Management Committee and adjusting assets tactically through Asset Allocation Council.