New bond-mixed fund targets policy-backed growth sectors; converts to bond-focused portfolio upon hitting 6% return goal
KB Asset Management said Monday it is launching the "KB K-Growth and Governance50 Target-Conversion No. 4 Fund," which invests in companies expected to benefit from the government's key industrial support policies and those poised for corporate value improvement.
The product is the successor to the KB K-Growth and Governance50 Target-Conversion No. 1, 2 and 3 funds, all of which hit their target returns ahead of schedule. The No. 4 fund is a bond-mixed fund that selectively invests in sectors the government is prioritizing under its "ABCDEF" framework — AI, biotech, content, defense, energy and manufacturing — as well as in stocks expected to rise in value through improved corporate governance and expanded shareholder returns.
About 50 percent of the portfolio is allocated to core companies within policy-backed industries to pursue growth, while the remaining roughly 50 percent goes into short-term bond ETFs and money market funds to secure stable returns.
The target return is 6 percent. Once the cumulative operating return for Class A units reaches 6 percent — equivalent to a cumulative net asset value of 1,060 won — the fund will sell all equity-related assets. It will then convert to a bond-focused portfolio centered on domestic fixed-income instruments to preserve the gains.
"Building on the proven investment strategy from funds No. 1, 2 and 3, this fund selectively invests in growth industries expected to benefit from policy support and in stocks with strong corporate value improvement potential, making it a particularly effective investment vehicle in a volatile market like the current one," said Beom Gwang-jin, head of KB Asset Management's pension and wealth management division.
KB Asset Management earlier launched the "KB Samsung Electronics SK Hynix 50 Fund," which concentrates investments in Samsung Electronics and SK Hynix while securing stability through short-term government and monetary stabilization bonds. The company introduced the fund using the same investment strategy after its "RISE Samsung Electronics SK Hynix Bond-Mixed 50 ETF" surpassed 3 trillion won (about $1.97 billion) in net assets within three months of listing.
yuni@heraldcorp.com
