[Provided by KB Asset Management]
[Provided by KB Asset Management]

KB Asset Management announced Wednesday the launch of a bond-mixed fund investing in key companies in advanced strategic industries the government is nurturing — the "KB Korea Advanced Strategic Industry 50 Target-Conversion Fund."

The advanced strategic industries covered by the fund are the 12 sectors the government has designated for development and support through its National Growth Fund over the next five years: semiconductors, displays, secondary batteries, biotech, robots, defense, vaccines, hydrogen, next-generation mobility, AI, critical minerals and content.

The fund pursues both growth and stability through diversified investment in advanced strategic industries and high-grade bonds. It allocates less than 50 percent of assets to shares to capture growth opportunities, with the remainder invested in domestic bond-related assets for stability.

On the equity side, the fund concentrates its portfolio to roughly 20 to 30 stocks selected through comprehensive analysis of industry growth potential and corporate competitiveness within the advanced strategic industries. The bond portion is diversified across high-grade domestic fixed-income instruments — including government bonds, monetary stabilization bonds, special-purpose bonds and bank bonds — as well as short-term bond ETFs and money market funds (MMFs).

The target return is set at a cumulative operating return of 7 percent for Class A units, equivalent to a cumulative net asset value of 1,070 won per unit. Once the target is reached, all equity-related assets are sold and the fund shifts to a bond-focused portfolio to preserve the gains.

"The KB Korea Advanced Strategic Industry 50 Target-Conversion Fund is structured to invest in high-growth domestic advanced strategic industries and then convert to a bond-type portfolio after hitting the target return, reducing volatility — making it an efficient investment alternative in the current market environment," said Beom Gwang-jin, head of KB Asset Management's pension wealth management division.

The fund will be available through KB Kookmin Bank, BNK Kyongnam Bank, Mirae Asset Securities, Kakao Bank and Korea Investment & Securities. Subscriptions close July 31, with the fund set to launch the same day, though the subscription period may vary by distributor.

KB Asset Management has been rolling out a range of new products recently. Earlier, it launched the "RISE US Space & Robot TOP2 US Treasury Mixed 50 ETF," a US Treasury bond-mixed ETF holding SpaceX and Tesla, and late last month it also introduced the "KB Korea Focus Qualified Target Date Fund (TDF)," designed to reflect the lifetime income cycle of Korean investors.


yuni@heraldcorp.com