Proposal of Defined Benefit Plan Provider Selection ○ ○ ○ KB pension business department.
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Transcript of Proposal of Defined Benefit Plan Provider Selection ○ ○ ○ KB pension business department.
1. Services and commitment to ○○○
A. Implementation related services
2
Related to Type Supporting activities of KB
Documentation
Plan document
-We survey employee’s opinions on adopting the retirement pension plan and special needs.-We advise making decisions on major items of plan documentation-Share major ideas of plan with employees before agreement process by employee education session-We can also provide English version of plan.
Employee agreement forms
-To adopt a pension plan, majority of employees has to agree on the plan.-After information session for employees, the signing on employee agreement form would be implemented. The forms can be provided by KB.
Other required documents
-We have experienced various contracts with global companies. For example, CDA, ASPA, SLA etc.-If you need additional contracts or agreements with us before main contracts, we are ready for them.
Filing the plan documents
Filing the plan document to the ministry of Employment and labor
-The plan documents should be submitted to the nearest labor office. This filing will be implemented also by KB. -The period needed for acceptance is generally one week.
Assisting any inquiries raised from the Ministry
-If there are questions about plan documents from Ministry, KB can answer instead of ○○○.-If the problem is serious one, then KB recommend the best solution for that.
Coordinating with the consulting firm
Support on employee communication
-KB can open information session for employee. These sessions are about retirement pension systems, vendor service introduction, etc. We will observe all guidelines given by the consulting firm in preparing sessions and making communication materials for employees.
KB advises and helps every single thing to make plan adoption successful. From making plan documents to filing them to the labor offices, we are involved directly and indirectly. We offer professional advices in every process.
1. Services and commitment to ○○○
A. Implementation related services
How long it will take?
• In case of DB plan, we generally expect one month to go to the retirement pension.
• To make seamless schedule, consult the direct responsible team from the beginning.
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Communication Time table
1. Services and commitment to ○○○
A. Implementation related services
What else can we do?• For smooth and peaceful agreement process, we open information sessions
at every site of ○○○.• We offer guide books and pamphlet to help employees understand the
retirement pension system fully.• For HR and finance staffs of ○○○, we suggest various simulations under
variously given assumption(for example, plan selecting model, retirement benefits comparison under each plan, pension payment schedule for participants, expected tax savings).
• We can participate in English conference call meeting to communicate with overseas offices of ○○○.
• And English version of plan documents are offered for ○○○ to review.
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1. Services and commitment to ○○○
B. Regular plan administration services
List of services that KB provide to HR team
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Service Delivery Process and Contents
Specialized consulting on adopting and implementing the retirement pension system
Face to face meeting,e-mail, phone calls
-Direct responsible team is always alert on the needs of ○○○ HR team. Certified labor attorney, CPA, licensed actuary and tax accountant will give you the most professional counseling through face to face meeting, sometimes by e-mail and phone calls.-The contents of counseling is not limited to the retirement pension service but also include labor and management relations, financial technologies, tax deduction.-Before adoption of pension plan, there will be several information sessions to help HR team make the best plan both for the management and labor and to prepare effective communication(including PT) with employees- If needed, we participate in conference call meeting held by international headquarters, to give information.
Investment result reporting
E-mail,Face to face meetingCall center
-We produce Investment result report of ○○○ every month. If there is a request from ○○○, we make reports more frequently. -These reports are generally sent by e-mail, and if HR and finance team of ○○○ can arrange a face to face meeting, we are willing to attend with fund managers and give Q&A session. -You can also check investments result by independent call center(1599-0099).
IFRS reports Post,e-mail
-We have 4 licensed actuaries who have much experience on IFRS reporting.-○○○ is provided with IFRS reports quarterly.
Providing calculating tools
E-mail(with MS EXEL files)
-Tools for calculating retirement benefits, pension amount, expected retirement payment, tax deduction amount, retirement income tax.-These tools are updated regularly.
Web registration
Web(internet banking)
-KB IT system got ISO 27001 certificate which confirmed the stability and safety of KB IT system.-With NPKI, ○○○ can order that retirement benefits should be paid to employees, through internet banking.
1. Services and commitment to ○○○
B. Regular plan administration services
Customized report on regular basis to ○○○
• KB provide customized reports for ○○○ on monthly basis. The contents of this report is decided by ○○○ in advance.
• The essential items of this report are reserve amounts, contribution amounts, investment order status, invested period, investment performances, accumulated rate of return, annualized rate of return, invested products list, invested amount to each products.
• The special items that DB company often requests are mostly related to the trend of retirement pension market. For example, contents of the recent ERBSA change, solution of labor and management issues, Tax deduction relations.
• We also offer other informative reports related to real estate investment and financial technologies, industrial trend.
• Customized reports can be written in English.
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1. Services and commitment to ○○○
B. Regular plan administration services
Participants educations
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ServiceMethod of delivery
Process and Contents
Retirement pension Information session
Open lectures(collective training)
-KB provide information session for DB participants of ○○○.-Pension experts give a lecture with presentation materials.-This lecture is about the retirement pension system and vendor’s additional service promotion.-Q&A time follows-The time and the place for the lecture is decided and informed by plan sponsor.-This education can be replaced by information posting by the request of company.-For the convenience of employees at the local offices, we give this lecture at each site.
Cyber retirement pension center
Web(www.kbpension.co.kr)
-You can use this web center around-the-clock-Participants can take the legally mandatory lessons here.-Plan sponsor(HR team) can check the study records of each participants.-Participants can study from retirement pension system to retirement benefits calculation.
Information posting
Post,e-mail
-All DB participants get participants education by information mail.-this mail contains the information of retirement pension, market issues, vendor’s additional services, vendor’s service channels. If participants have any questions, then they can ask to KB retirement pension call center(1599-0099).
Face to face session
Meeting room
-For DC participants, KB offer additional face to face sessions for employees, semiannually.-In this sessions, participants check their investment result and are advised to change product and portfolio if necessary.
1. Services and commitment to ○○○
B. Regular plan administration services
Images of various education programs of KB
<Open lecture : Q&A><KB cyber education center>
<KB retirement pension call center>
<Open lecture for the management>
1. Services and commitment to ○○○
B. Regular plan administration services
If ○○○ select single plan administrator & Multiple asset custodians, how could KB support the structure?
Service How to support
Communication center
•As a plan administrator, KB is in charge of whole communication with HR team of ○○○ and other custodians. ○○○ just contact KB direct responsible team, and all needed communication with other custodians will be arranged by KB.
•To make all custodian cooperate effectively, we make Service Level Agreement(SLA).
•Basic information such like e-mail address and office phone number will be shared and updated regularly.•The man who are directly responsible for the transaction should be clearly designated.
Independent and flexible IT service
•KB have the best interface for both bundle structure and unbundle structure. For the first time in the retirement pension market, KB made the interface with other industry like Samsung , Kyobo, Daehan life insurance companies. •KB has established interface with 35 vendors and is able to establish a new interface with other vendor organization within 1 month.
Retirement benefitsPayment &Contribution making
•Retirement benefits payment & contribution making can be complicated if there are many custodians. In this case, custodians give only the amount that matches their funded ratio.
•What ○○○ only have to do is to give the payment order to KB direct responsible team. Then KB will arrange all needed communication and information sharing for giving retirement payment .
•Taxation is always something to note. We have a licensed tax accountant as a member of direct responsible team, so we can advise plan sponsor’s deducting tax from income at source, whenever needed.
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1. Services and commitment to ○○○
C. Additional services
Retirement pension service fee discount
Time Discount rate
From 2nd year 10%
From 3rd year 12%
From 4th year 15%
• KB offers a discount on both plan administration and asset management fee for the first time among banks.
• This benefits start from 2nd year of contract.
• Some insurance companies offer a discount, but the discount applies just on plan administration fee and the benefits start from 3rd year of contract.
1. Services and commitment to ○○○
D. Additional services for ○○○ participants
Financial service
Service Suggestion Details
Credit loan MinimumCD+α%
The Lowest credit rate is O.OO%(as of MMDD, YYYY). CD+α% can be applied as of MMDD, YYYY
Mortgage loan
Lowest level of loan rate among
banks
KB provides lowest level of loan rate among banks for retirement pension secured loan, mortgage loan, and lease loan.
Lease loan
Foreign Exchange
Service
Up to 90%discount
If any occasion of foreign currency transfer or exchange, there is a discount up to 90%.
Commission fee
No fee All frequently used banking services are free.
Travelerinsurance
Free registration
Free registration of traveler insurance is provided when using foreign exchange service.
KB cyber network
No need to visit off-line
branch
KB can open cyber branch inside ○○○ intranet. If you log in this branch, you can borrow money without any paperwork.
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1. Services and commitment to ○○○
D. Additional services
Educational & Cultural service
Service Suggestion details
ConsultingService
Free consultingby licensed experts
Provides consulting service for areas such as finance, human resources and financial consultation field
Information Session
Open lectureProvides consulting service for areas such as finance, human resources and financial consultation field
On-line Education
Price discount
-Maximum 20% of discount when using online educational institutions such as nPagoda, Hunet, Rosetta World, Global 21, I Choongang etc.-20% discount on classes via Telephone which has 250 native teachers from prestigious universities.
Supporting programs for
retireesFree Course
Re-employment/ start-up business supporting programs for retirees
On-lineBook store
On-line Book purchase
Maximum 60% of discount and free delivery service when using online book store
KB Wise Green Camp
Summer/Winter camp for kids
Provides economics class for children with various outdoor activities.
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1. Services and commitment to ○○○
D. Additional services
Personal life service
Service Suggestion Details
HealthScreencenter
Low priceDiscount on health check fee which is applied to 80 general hospitals over the country
FuneralSupport
50% discountCompare to general funeral service, it provides 50% cheaper funeral service.
InternetShopping
mall
More pointsLow price
maximum 65% discount when using Lottedotcom, Samsung mall, I park mall
RestaurantDiscountCoupon
Family restaurant gift card for Happy money, Outback steak house, VIPS etc is offered at a discounted price.
Gift delivery services
10% discount10% discount on delivery services’ of JongNo Bok Dok, Crown Bakery products.
Wedding package
15% discount 15% discount offered for wedding package.
Shoppingglasses
15% discount15% discount offered for using 1001 or See-channel optician’s
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1. Services and commitment to ○○○
D. Additional services
Leisure service
Service Suggestion Details
AmusementPark
65% discountDiscounted ticket of Popular amusement parks such as Lotte World, Everland
Hotel/Resort Discount Discount on condominium /hotel reservation service
Car rentalMore than 65% Discount
65% ~ 75% discount on rental car companiessuch as AVIS, Web Tour
Meeting roomOffer KB’s facilities
Lending conference room and training institute amenities for work shop.
Golf 10% Discount 10% discount on reservation Ace Golf
LeisureActivity
40% Discount40% discount on leisure sports facilities such asCamping car, horse-riding, shooting, water-skiing,skiing etc.
Movie and show tickets
50% discountMaximum 50% discount on movie and show tickets which is only available through ticket link, auction ticket, clip service and mom school services.
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2. Investment products & Supports
A. Bankruptcy remoteness
DB assets are protected against the bankruptcy?
• DB assets are belonged to the trust account which separated from the original account. This means creditors of bank cannot claim the right on DB assets. The trust law guarantee it.
• So, DB assets are remote from bankruptcy.
Then why is the credit rating of bank important?
• Even though DB assets are remote from bankruptcy, it doesn’t mean that they are free of product default risk. So the credit rating of custodian is important.
• KB ‘s credit ratings are the highest among all financial institution of Korea. They are the same as Korean sovereign rating.
• And the credit risk of asset management company is strictly monitored under the risk management system of KB.
• Your vested right on retirement pension is guaranteed under the soundness and stability of KB
Soundness and stability of KB
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2. Investment products & Supports
B. Suggested Investment strategies
Asset allocation suggestion
Option1 Option3 Option4 Option5
Asset allocation Stock : 0%Stock : 7%
Bond & time-deposit : 93%
Stock : 22%Bond & time-deposit : 78%
Stock : 37%Bond & time-deposit : 63%
Expected return 5.32% 6% 7% 8%
Standard Deviation
(Expected risk level)
0(none)
0.0201(Medium)
0.0516(Medium)
0.0844(High)
• In case of Option 1, all pension money are invested in KB time-deposit. The expected return of option 1 is the rate of 5-year KB wise time-deposit as of July 18, 2011.
• On the efficient frontier, we select a few options for asset allocation as above.
• When we compare each asset class, there’s no significant difference between time-deposit and bond. Both 3 year bond and 5 year bond are equally less preferred to time-deposit products (more risky and less profitable).
• So, what we focus on in the next step, is only the portion of equity exposure.
• Direct investment on stocks is not available, but indirect investment on stocks through fund products can be suggested.
• We make product portfolio next page, satisfying the stock exposure of each options.
(As of July 18, 2011)
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2. Investment products & Supports
B. Suggested Investment strategies
Recommendation of Products
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Type Product type Product nameRate of return of last 5 years(annualized %)
Invested Stock
PrincipalGuaranteed
Time-depositKB retirement pension time deposit
N/A -
Performance based
Stock fundKB Retirement Pension Equity Fund
26.49Growth Stocks & Dividend Stocks
Stock mixed fund
KB Retirement Pension Growth Equity60 Fund
18.04 Growth Stocks
Bond mixed fund
KB RP Dividend 40 Bond Mixed
14.20Dividend Stocks
Bond mixed fund
Samsung Pension Korea Blue Chip 40 Securities Feeder
14.11Blue chip stocks in core business
Bond mixed fund
Mirae Asset RP solomon Income 40 Balanced Feeder 1
12.54Value and growth stock
Bond mixed fund
HI Pension Good Choice Balanced 40 Investment No.1
11.36Growth and value stock
Bond mixed fund
Korea Investment Value 10-year Retirement Pension Balanced Fund Feeder 1
14.86
Undervalued Stocks that have lower market price than their intrinsic values
(As of June 30,2011)
2. Investment products & Supports
B. Suggested Investment strategies
Description of KB funds
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Product name
Tips for investment
decisionPortfolio Strategy
KB Retirement Pension Equity Fund
A fund for customers who expect a long-term growth of the stock market while being apprehensive of high index levels
•A retirement pension fund for an investment of under 100% in main growth stock funds and main dividend funds•Stock price increase in growth stocks and dividends on high-dividend stocks acquired simultaneously•Although the expected return is lower than an active stock fund, a consistent return is provided more safely•Profitability and stability achieved simultaneously by consistently maintaining the market value ratio in the growth stock and dividend funds
KB Retirement Pension Growth Equity 60 Fund
Suitable for investors seeking investment more stable than stock investment as stock investment ratio is maintained at under 60%
•A retirement pension fund for an investment of under 60% in main growth stock funds and over 30% in main domestic bond funds•Focused investment in blue chips leading the stock market flow based on an ongoing industrial/corporate analysis•Investment in growth stocks kept to under 60% for a lower risk than investment in normal stocks•A long-term and focused investment based on a corporate analysis to take a step away from a short-term momentum-driven investment
KB RP Dividend 40 Bond Mixed
•Suitable for investors who want to make a long-term investment in the S. Korean stock market with minimum risks•Stable bond and stock management (dividend-oriented) to achieve + alpha yield
•A retirement pension fund for an investment of under 40% in main dividend funds and over 50% in main domestic bond funds•Stock investment is made with a focus on dividends; stocks are selected based on dividend rates and stability in returns•Stable and relative high returns are sought through a long-term investment in government bonds and corporate bonds•Dividend transfer ratio is limited for a stable return on bonds and additional profit from stock market increases
2. Investment products & Supports
B. Suggested Investment strategies
Description of other funds
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Product name
Tips for investment decision
Portfolio Strategy
Samsung Pension Korea Blue Chip 40 Securities Feeder
Long-term excess yield aimed for through an investment in the largest Korean business enterprises and promising companies for stability and growth
•A retirement pension fund with 40% stock investment and 60% cash asset/bond investment•Stable returns aimed for through an investment in Korea’s largest enterprises with growth potential and stability•Long-term profit aimed for through an investment in the growth of promising companies•Part of the principal invested in bonds (government bonds, currency bonds) for a stable return
Mirae Asset RP solomon Income 40 Balanced Feeder 1
•Stable returns through a combined investment in stocks and bonds•Interest returns achieved through a portfolio with under 80% invested in domestic bonds
•A bond-combined retirement pension fund with 40% domestic stock investment and 60% bond investment•Stocks: A fund for long-term investment in blue chips of international power based on the Korean economy and long-term stock market increase•Bonds: Bond investment aimed for ongoing high performance through long-term estimates, risk management in advance, and additional returns strategies
HI Pension Good Choice Balanced 40 Investment No.1
• Pursue long-term profits to prepare expense for retirement living•Pursue profits over KOSPI through equity management with long-term market trend •Pursue fixed income and capital gains through passive and active bond management
• Big growth stocks lead KOSPI index raised. So we mainly have invested into growth-style stocks.• Meanwhile we are expanding investment into value-style stocks with the spread of value investment• Making excess return by the investment of Growth and Value Stock• Discover undervalued stocks that can grow in the long term through companies analysis with thorough Field Survey
Korea Investment Value 10-year Retirement Pension Balanced Fund Feeder 1
•This Investment Trust takes the bottom-up method which focuses only on the issuing company of the share, instead of focusing on the economic conditions, the industry trend.
•Low-PER Strategy : invest in shares which are relatively under-valued than other shares in the stock market in view of company earnings. •Low-PBR Strategy: invest in shares which are relatively under-valued than other shares in the stock market in view of the aggregate book value of company properties of various kinds(land, building, cash, etc.). •High-Dividend Strategy : invest in shares of the companies which generate earnings in the more stable manner than other companies and return part of the earnings to shareholders in the form of dividend.
2. Investment products & Supports
B. Suggested Investment strategies
Descriptions of investment management organization
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Name of AMC
Strength of each AMC
KB asset management
•KBAM is a company with very flexible business model which allows rapid tactical adjustments to the long term strategic agenda in response to the constantly changing market environment while observing rigorous risk management requirements at all times.• KB Asset Management (KBAM) has team management system. Our asset management is not decided by one manager, pursues balance and harmony with managers. KBAM is a company in KB Financial Group which is a biggest financial group in Korea. Growth of KBAM is very fast in Korean asset management industry. Total AUM of KBAM ranks top 4, equity fund AUM(KRW 3.8 trillion) of KBAM is top 6 in Korean asset management industry. KBAM is a company, which supports customers’ total asset management solutions.
Samsung asset management
•Samsung asset management is the Largest Asset Management Firm in Korea, and tailored to clients’ needs. Main Customers are investment Pool for Public funds (21.7Tril., Ministry of strategy Finance Republic of Korea), K Pension(1.6Tril), L Company(0.6Tril.), S Company (0.8Tril.), N Company (0.8Tril.), M Company (0.8Tril.)•Globalization is another strength of Samsung asset management ; Advisory to the first ETF investment in Thailand, Mandate as Discretionary Investment Advisor for Nomura Korea Stock Fund by Nomura AM, Global Standard, Adopted Wellington’s Equity Investment Process, Advisory agreement with BGI on Passive Management•It has differentiated Advanced Investment Process ; Best In-house Research in the Industry, team approach system, advanced Risk Management & Compliance
Mirae asset management
• Mirae Asset Global Investments is definitely the first leading asset management in the Korean retirement pension fund market which has 29.60% of market share. Asset under management of retirement pension fund is over 635,000 million won. Mirae Asset Global Investments supports our clients’ blissful later life by providing a large variety of retirement pension funds which have excellence and stable track record.• Harvard Business School has decided to study how Mirae Asset, an independent company, successfully became in a decade the leader in a country where the financial industry is dominated by big conglomerates (Asia’s first asset management company to be selected as a case study)
HI asset management
•Hi Asset management company belonging the giant company group (Hyundai Heavy Industry).•The group will invest the Retirement Pay into the pension funds in the future. •HI Asset Management Co. has the long history in the fund industry and exclusive team for retirement pension as well.•The performance of bond as well as equity is excellent. It received Best Asset Manager 2010(Bond part) by Zeroin (No. 1 company of fund rating)
Korea investment value management
KIV’s strategy is to invest in undervalued stocks which have higher intrinsic values than their market price . KIV make long-term investments based on fundamental values, regardless of short-term volatility. KIV pursue stable returns by minimizing risks. The fund is managed by Chae-won Lee, Korea’s leader in value investing
2. Investment products & Supports
B. Suggested Investment strategies
Historical investment results for the portfolios and their benchmarks
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Product nameInception
date 1Y 2Y 3Y 4Y 5YPerformance
Since Inception
Benchmark Performance
Since Inception
KB Retirement Pension Equity Fund
2006-01-03 25.11 73.28 59.17 60.69 132.45 99.45 49.13
KB Retirement Pension Growth Equity 60 Fund
2006-03-10 16.33 45.03 47.04 48.04 90.21 91.76 53.29
KB RP Dividend 40 Bond Mixed
2006-01-02 14.88 35.21 38.54 44.44 71.04 65.97 44.03
Samsung Pension Korea Blue Chip 40 Securities Feeder
2006-01-02 14.78 31.20 34.27 39.87 70.55 67.76 43.76
Mirae Asset RP solomon Income 40 Balanced Feeder 1
2006-01-04 12.12 28.57 30.48 33.47 62.73 62.51 50.15
HI Pension Good Choice Balanced 40 Investment No.1
2008-02-18 12.78 33.16 34.08 - - 35.07 24.85
Korea Investment Value 10-year Retirement Pension Balanced Fund Feeder 1
2007-06-14 13.18 38.62 44.59 - - 53.93 24.69
(As of June 30,2011)
2. Investment products & Supports
C. Conditions attached to the investment products
Fees and penalties of recommended products
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Product nameFees
(both direct and indirect)
Penalties
5 year KB retirement pension time deposit
-
-In case of resignation, there’s no penalties, which means we offer the promised rate.
-In case of products switch, we deduct only 0.8% from the promised rate.
KB Retirement Pension Equity Fund
1.2%30% of profits in case of redemption in 90 days from the investment
KB Retirement Pension Growth Equity 60 Fund
1.0%30% of profits in case of redemption in 90 days from the investment
KB RP Dividend 40 Bond Mixed 0.8%30% of profits in case of redemption in 90 days from the investment
Samsung Pension Korea Blue Chip 40 Securities Feeder
0.8%30% of profits in case of redemption in 90 days from the investment
Mirae Asset RP solomon Income 40 Balanced Feeder 1
0.8%30% of profits in case of redemption in 90 days from the investment
HI Pension Good Choice Balanced 40 Investment No.1
0.8%30% of profits in case of redemption in 90 days from the investment
Korea Investment Value 10-year Retirement Pension Balanced Fund Feeder 1
1.044%30% of profits in case of redemption in 90 days from the investment
2. Investment products & Supports
D. Monitoring the investment performance and providing guidance to maintain sound portfolio
Employer alert
Report type Delivery What is informed
RegularInvestment report
Post,e-mail,Face to face meeting,
•We make the investment result reports for ○○○ every month or as often as ○○○ requests.
•If the result is in the acceptable rage of variation, the reports are sent by e-mail, post.
•And at least quarterly, we offer face to face meeting to make a presentation about the performance in front of ○○○’ HR team and finance team.
•Each detailed reports about fund products are provided additionally, monthly.
Alarm servicePhone,SMS
•If fund performances fall unexpectedly, we make a call right away.
•If fund performances exceed the targeted rate of return, we also inform the result by phone and check if ○○○ need to sell the product and change it other product like time-deposit.
Compliance checkPost, E-mail
•According to investment guidelines, risk management division check invested asset, companies and their weightings by daily basis, and give feedback to direct responsible team, monthly basis.
•Risk indicators are reflected to the reports calculating tracking error, turnover rate, etc. (Daily, Weekly, Monthly, and Quarterly basis.)
•All reports provided to ○○○ is made based on this information.
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2. Investment products & Supports
D. Monitoring the investment performance and providing guidance to maintain sound portfolio
Regular counseling after implementation
Conseling Delivery Details
News onretirement pensionmarket
e-mail,post
•News on amendment of retirement pension related law, such like employee retirement benefit security act, new trend in retirement pension market are informed in timely manner.
•Criterion for retirement pension management is updated and informed for compliance check.
•Other things and issues that ○○○ request for follow-up control will be provided in timely manner.
New portfolio recommendation
Face to face meeting with reports
•Whenever ○○○’s required rate of return changes by the reasons like changes of retirement ratio, wage increase rate, expected rate of return in the market, we offer a new portfolio recommendation.
•The asset classification is made through ALM method and the product portfolio is recommended by the investment team of KB with detailed analyzed reports.
2. Investment products & Supports
D. Monitoring the investment performance and providing guidance to maintain sound portfolio
Automated investment tools such as rebalancing
Option Functioin Details
Option 1Investment ratio fixation
•Plan sponsor or participant register the auto-rebalancing ratio.
•The actual invested ratio changes according to the market changes.
•The changed investment ratio is rebalanced into the pre-registered investment ratio regularly.
•Some products are sold and some are purchased automatically for rebalancing.
Option 2Investment ratio variation
•Plan sponsor or participants register the asset management ratio(40%~60%) in advance.
•Compare the purchase price as of today with the average purchase price as of previous purchases
•If the price of today is higher than the average purchase price, the investment ratio on funds increases and vice versa.
•By this function, the invested ratio is automatically decided.
Option 3Auto-rebalancing for compliance
•If there is a breach of compliance, the portfolio and investment ratio are automatically rebalanced.
•The rebalanced products and method are decided in advance of rebalancing, in a way on which plan sponsor and participants are agreed.
Option 4
Repurchase in case of achieving the target rate.
•When fund products achieve the target rate of return, then sell them and buy different type of products such as time-deposit.
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