KB Asset Management's gold fund opens door to pension investors

As market volatility has increased, interest in using gold for portfolio diversification has grown — and a product that allows investors to gain gold exposure through retirement pension accounts is drawing attention as a new pension investment option.

KB Asset Management said Tuesday that its KB Star Gold Special Asset Fund has been gaining traction among pension investors as a diversification tool, following changes that made the fund accessible through retirement pension accounts by adopting an ETF-centered management structure and lowering its management fee.

Established in 2008, the KB Star Gold Special Asset Fund allows investors to gain exposure to gold without directly buying or storing physical gold. The fund has been in operation for 18 years, navigating major market disruptions including the global financial crisis, the European fiscal crisis and the COVID-19 pandemic.

In July, KB Asset Management restructured the fund's investment approach, shifting from a derivatives-heavy strategy to one centered on domestic and international gold ETFs. The firm also reduced the fund's derivatives risk exposure to below 40 percent, making it eligible for retirement pension accounts.

In addition, the company overhauled its fee structure, cutting the management fee by about 40 percent from the previous level, and improved operational efficiency by incorporating low-cost gold ETFs. Redemption proceeds are paid within four business days.

The KB Star Gold Special Asset Fund is currently available for trading through retirement pension accounts at KB Kookmin Bank and Shinhan Securities, with plans to expand the distribution network. For general accounts, the fund is available through 29 domestic distributors, including KB Kookmin Bank, KB Securities, Samsung Securities, Hana Bank, SC Bank and Shinhan Bank.

"It is important to diversify retirement pension investments across a range of assets from a long-term perspective," said Beom Gwang-jin, head of KB Asset Management's pension wealth management division. "Gold can add a diversification element beyond the traditional asset allocation of shares and bonds, and we will continue to introduce pension products that reflect diverse investment needs to broaden the choices available to investors."

The RISE Network Infrastructure ETF has also drawn attention for its returns. KB Asset Management said the product ranked first among domestic equity ETFs in six-month returns. According to fund evaluator FnGuide, the ETF posted a six-month return of 67.24 percent as of Aug. 26, the highest among 398 domestic equity ETFs. Its one-year and three-year returns also stood at 346.80 percent and 479.30 percent, respectively. The ETF invests in key companies across the network infrastructure value chain, including makers of 5G telecommunications equipment, base station equipment and subscriber network equipment.