KB Asset Management Launches "K-Growth & Governance 30 Target Conversion Fund"

KB Asset Management announced on June 9 that it will launch the "KB K-Growth & Governance 30 Target Conversion Fund," which invests in companies benefiting from key government industrial support policies and stocks expected to see an increase in corporate value.

This product is a mixed bond fund that selects and invests in stocks within the so-called "ABCDEF" industries—Artificial Intelligence, Bio, Content, Defense, Energy, and Smart Factory—which are being intensively fostered by the government. It also focuses on stocks expected to rise in value due to improvements in corporate governance and expanded shareholder returns, both of which are hot topics in the recent financial market.

About 30% of total assets will be allocated to key companies in growth industries that are certain to benefit from government policies, aiming for excess returns, while the remaining 70% will be invested in high-quality domestic bonds to ensure portfolio stability. Specifically, the equity portion will be managed by selecting stocks with high growth potential and beneficiaries of governance reform through thorough quantitative and qualitative analysis. The bond portion will focus on high-quality assets such as government bonds, monetary stabilization bonds, special bonds, and bank bonds.

This fund is structured to convert to safe assets once a predetermined target rate of return is reached. The target return is set at 6%. Once the cumulative management return for Class A reaches 6% (with the cumulative base price at 1,060 won), all stock-related assets will be sold. Afterward, the fund will shift to a bond-focused strategy centered on short-term domestic bonds to manage the secured returns in a stable manner.

Beom Kwangjin, Head of Pension WM Division at KB Asset Management, stated, "A target conversion fund is a product that allows investors to pursue return opportunities while securing stability by converting to bonds after achieving the target. By selectively investing in growth industries expected to benefit from policies and in stocks that can enhance corporate value, this fund offers an efficient investment alternative, especially in highly volatile markets like today."

The fund can be subscribed to through KB Securities, NH Investment & Securities, SK Securities, Kyobo Securities, and Mirae Asset Securities. Subscriptions will be accepted until June 13, with the fund to be established on the same day.

This content was produced with the assistance of AI translation services.