Target rate of return
KTCU strives to achieve mid- and long- term asset returns that cover interest rates, operating expenses, and reserve targets
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 amount 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 5% or above comparedto the base year according to asset allocation plan must be 10% or below
Mid-and Long-term Asset Allocation
- KTCU manages investment assets by categorizing them into financial assets (stocks, bonds, alternative investments, etc.), member loans, and other assets (tangible/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: 79.3% in fund management assets, 18.2% in member loans, 2.5% 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 |
|---|---|---|---|---|---|---|---|
| 6.6% | 9.8% | 8.0% | 6.0% | 10.1% | 16.4% | 15.5% | 27.6% |
The weight of asset allocation is based on financial portfolio(by 2028)
- 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.