Fund concentrates on policy beneficiaries in AI, biotech, defense and energy; converts to bonds once 6% target is hit
KB Asset Management announced Tuesday the launch of the "KB K-Growth and Governance 30 Target-Return Fund," a new product investing in companies expected to benefit from the government's key industrial support policies and in stocks poised for corporate value improvement.
The fund is a bond-mixed vehicle that selectively invests in the government's priority "ABCDEF" industries — AI, Bio, Contents, Defense, Energy and Factory — as well as in companies expected to gain from improved corporate governance and expanded shareholder returns.
The fund allocates roughly 30 percent of assets to core companies in policy-favored industries to pursue growth, while directing the remaining 70 percent into high-grade bonds to secure stable returns.
On the equity side, the fund screens for stocks with strong competitiveness and growth potential through quantitative and qualitative analysis, concentrating on core ABCDEF-sector companies and firms set to benefit from governance improvements. The bond portfolio invests in domestic high-grade instruments, including government bonds, monetary stabilization bonds, special-purpose bonds and bank bonds.
The target return is 6 percent. Once the Class A cumulative return reaches 6 percent — equivalent to a cumulative net asset value of 1,060 won — the fund will liquidate all equity-related assets and convert to a short-term domestic bond strategy, locking in gains under a more stable structure.
"A target-return fund lets investors pursue upside while securing stability by converting to bonds once the goal is reached," said Beom Gwang-jin, head of KB Asset Management's Pension WM division. "Because the fund selectively invests in growth industries and corporate value improvement stocks expected to benefit from policy support, it should serve as an efficient investment alternative in a volatile market environment like the current one."
KB Asset Management also recently launched the "KB Samsung Electronics SK Hynix 50 Fund," which concentrates on Samsung Electronics and SK Hynix while simultaneously seeking stability through short-term government and monetary stabilization bonds. The fund uses a combination of individual shares, futures and exchange-traded funds to maintain roughly 25 percent exposure to each company, and builds its bond portfolio primarily around government bonds and monetary stabilization bonds to enhance overall stability.
th5@heraldcorp.com
