KB Asset Management Completely Overhauls 'KB STAR Gold Fund', Cuts Management Fees by About 40%

KB Asset Management has restructured its flagship gold investment product, the 'KB STAR Gold Fund', to center around exchange-traded funds (ETFs) and has reduced its management fees.

According to KB Asset Management on August 3, the previous KB STAR Gold Fund had a high proportion of gold-related derivatives, which limited its inclusion in retirement pension accounts. However, through this restructuring, the investment structure was changed to utilize a variety of domestic and international gold ETFs, thereby reducing the derivative risk exposure to under 40%. This improvement has made it possible for the fund to be included in retirement pension accounts.

The overhaul has also greatly improved cost efficiency and tracking accuracy. By actively leveraging low-cost gold ETFs and lowering the management fees by approximately 40% compared to before, the fund reduced the cost burden for investors. The benchmark (BM) was also changed to the 'LBMA Gold PM Price', a key indicator of global gold spot trading, strengthening the fund’s ability to track international gold prices.

The KB STAR Gold Fund is a long-standing fund that has been managed for over 18 years since its inception in 2008. It has consistently served as a means for diversified investment using gold, even during periods of heightened market volatility such as the global financial crisis, the European debt crisis, and the COVID-19 pandemic.

Investors can invest through both installment and lump-sum methods without the need to directly buy or store physical gold, and redemption payments are made within four business days, offering competitiveness in terms of liquidity and cashability.

The fund has also delivered strong returns. According to FnGuide, an investment fund evaluation company, the KB STAR Gold Fund recorded a return of 85.51% over the most recent three-year period.

Beom Kwangjin, Head of Pension WM Division at KB Asset Management, stated, "This restructuring is focused on boosting the product’s competitiveness, enabling investors to invest in gold at lower costs and also use it in their retirement pension accounts." He added, "Gold is a representative asset expected to provide both inflation protection and diversification benefits, so its utilization as a long-term asset allocation tool is anticipated to increase."

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