KB Asset Management overhauling 'KB Star Gold Fund' to cut costs, open pension access

KB Asset Management announced Monday that it has fully restructured its flagship gold investment product, the KB Star Gold Fund, shifting to an ETF-centered management structure.

The overhaul allows investors to hold the fund in retirement pension accounts and reduces the cost burden through lower management fees.

The previous version of the KB Star Gold Fund carried a high proportion of gold-related derivatives, which restricted its eligibility for retirement pension accounts. The restructured fund replaces that approach with a framework built around a range of domestic and international gold ETFs, bringing the risk-weighted derivatives exposure below 40 percent and making the product compatible with pension accounts.

KB Asset Management also revised its fee structure to reflect current market conditions, cutting the management fee by about 40 percent and actively incorporating low-cost gold ETFs to improve operational efficiency. The fund's benchmark has been changed to the LBMA Gold PM Price, the standard reference for international gold spot trading, enabling more precise tracking of global gold prices.

The KB Star Gold Fund has been in operation for more than 18 years since its launch in 2008. It has consistently served as a diversification tool through periods of heightened market volatility, including the global financial crisis, the European fiscal crisis and the COVID-19 pandemic.

Investors can participate through both installment and lump-sum methods without needing to buy or store physical gold directly. Redemption proceeds are paid within four business days, giving the fund a competitive edge in liquidity and ease of conversion.

The fund has also delivered strong returns. According to fund evaluator FnGuide, the KB Star Gold Fund posted a three-year return of 85.51 percent.

"This restructuring focused on enhancing the product's competitiveness so that investors can access gold at a lower cost while also being able to use it within their retirement pension accounts," said Beom Gwang-jin, head of KB Asset Management's pension wealth management division. "Gold is a representative asset for inflation hedging and portfolio diversification, and we expect its utility as a long-term asset allocation tool to grow further."

KB Asset Management has also recently launched a monthly distribution covered-call product. The firm introduced the RISE Kosdaq Covered Call Active ETF on July 28, which pursues monthly distributions by actively investing in Kosdaq growth stocks while applying a covered-call strategy. Rather than simply tracking the Kosdaq 150 index, the fund seeks excess returns through a concentrated portfolio selected by its managers, using premiums from Kosdaq 150 weekly call options as the source of monthly distributions.