Fund targets key policy-backed sectors including AI, biotech, defense and energy

Converts to bond-focused portfolio once 7% target return is reached

[KB Asset Management]
[KB Asset Management]

KB Asset Management said Wednesday it has launched the "KB K-Growth and Governance 50 Target-Return Securities Investment Trust No. 6," a fund that concentrates its investments in stocks expected to benefit from government policy and deliver improved corporate value.

The product is the latest in the "KB K-Growth and Governance 50 Target-Return Fund" series. The first three funds achieved their target returns ahead of schedule, while the fourth and fifth remain in operation.

The sixth fund is a bond-mixed fund that selectively invests in stocks expected to gain from the government's priority "ABCDEF" initiative — covering AI, biotech, contents, defense, energy and manufacturing — as well as companies poised to benefit from improved corporate governance and expanded shareholder returns.

On the equity side, the fund applies both quantitative and qualitative analysis to identify core companies within the ABCDEF industries and those benefiting from governance improvements, concentrating its holdings in roughly 20 to 30 stocks. The equity allocation can be raised to a maximum of 50 percent to enhance growth potential.

On the bond side, the fund invests indirectly in short-term bond ETFs and money market funds that hold high-quality domestic bonds, securing stable interest income.

The target return is set at 7 percent. Once the cumulative operating return for Class A units reaches 7 percent — equivalent to a cumulative net asset value of 1,070 won per unit — the fund will sell all equity-related assets and convert to a short-term domestic bond-focused portfolio to preserve the gains. It will then be managed around high-quality bonds with short durations to minimize interest rate risk.

Beom Gwang-jin, head of KB Asset Management's pension wealth management division, said the structure — which pursues a target return in a volatile market and then converts to a bond portfolio once that target is met — "will be an attractive option for investors looking to reduce return volatility after locking in gains."

KB Asset Management has been accelerating its new product launches in recent months. On Aug. 11, it released the "RISE US Space and Satellite Communications" ETF, which invests in 10 US companies across four segments: satellite manufacturing and launch, satellite communications equipment and networks, satellite communications services, and satellite data and services. Key holdings include SpaceX, Lumentum Holdings, Ciena and Rocket Lab. No single stock may exceed 25 percent of the portfolio, and weightings are rebalanced four times a year.


th5@heraldcorp.com