KB Asset Management launches 'K-Growth and Governance30 Target-Return Fund'

KB Asset Management announced Tuesday it is launching the "KB K-Growth and Governance30 Target-Return Fund," which invests in companies expected to benefit from the government's core industrial support policies and those poised for corporate value improvement.

The fund is a bond-mixed vehicle that selectively invests in sectors the government is actively promoting under the "ABCDEF" framework — AI, Bio, Contents, Defense, Energy and Factory — as well as in companies expected to see their valuations rise through improved corporate governance and expanded shareholder returns.

The fund allocates roughly 30 percent to key companies within policy-favored industries to pursue growth, while directing the remaining 70 percent into high-grade bonds for stable returns. On the equity side, holdings are selected through quantitative and qualitative analysis to identify companies with strong competitiveness and growth potential, with a focus on core ABCDEF-sector firms and beneficiaries of governance reform. The bond portion invests in domestic investment-grade instruments including government bonds, Monetary Stabilization Bonds, special-purpose bonds and bank bonds.

The fund targets a 6 percent return. Once the cumulative net asset value per unit reaches 1,060 won — equivalent to a 6 percent cumulative gain for Class A shares — all equity-related assets will be sold. The fund then converts to a short-term domestic bond structure to preserve the gains secured.

KB Asset Management recently launched the "KB Samsung Electronics SK Hynix50 Fund," which concentrates investments in Samsung Electronics and SK Hynix while maintaining stability through short-term government and Monetary Stabilization Bonds.