KB Asset Management Launches "KB K-Growth and Governance 50 Target Maturity Fund No. 6"

Investing in Core Companies Benefiting from Government Policies in AI, Bio, and Defense Sectors

Switches to Bond-Focused Strategy Upon Achieving 7% Target Return

KB Asset Management announced on September 16 that it has launched the “KB K-Growth and Governance 50 Target Maturity Securities Investment Trust No. 6,” a fund that focuses investments on stocks expected to benefit from government policies and enhanced corporate value.

This product is a follow-up to the existing “KB K-Growth and Governance 50 Target Maturity Fund” series. The first to third products in the series achieved their target rates of return ahead of schedule, while the fourth and fifth are currently under management.

The KB K-Growth and Governance 50 Target Maturity Fund No. 6 selectively invests in companies expected to experience an increase in corporate value due to improvements in corporate governance and greater shareholder returns, particularly in “ABCDEF” sectors (AI, Bio, Contents, Defense, Energy, Factory) emphasized by the government’s core policies.

In the equity segment, the fund makes concentrated investments in about 20 to 30 companies identified as key players within the ABCDEF industries and those benefiting from improved corporate governance. The selection is based on both quantitative and qualitative analysis. The equity allocation can be increased up to 50% to maximize growth potential.

On the fixed income side, the fund aims for stable interest income by indirectly investing in high-quality domestic bonds through short-term bond ETFs and money market funds (MMFs).

The target rate of return is set at 7%. When the cumulative return for the A class reaches 7% (a cumulative base price of KRW 1,070), all equity-related assets are sold and the fund is converted into a bond-focused strategy based mainly on domestic short-term bonds. This is to manage the realized gains stably. Subsequently, the fund is managed with a focus on high-quality, short-duration bonds to mitigate interest rate risk.

The fund is available for subscription at KB Kookmin Bank, BNK Busan Bank, iM Securities, Mirae Asset Securities, and other distributors, with the subscription period running until September 28 and the fund to be established the following day. The subscription period may vary depending on the distributor.

Bum Kwangjin, Head of Retirement WM Division at KB Asset Management, stated, “In a highly volatile stock market environment, the structure of pursuing a target return and then switching to a bond-type strategy to reduce return volatility after reaching the target will be an attractive option for investors. With the experience and know-how accumulated from managing previous target maturity fund series, we will pursue stable performance while flexibly responding to market conditions.”

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