KCGI Asset Management Launches Ultra-Short-Term High-Grade Bond Fund

KCGI Asset Management announced on the 18th that more than 100 billion KRW has flowed into the KCGI Ultra-Short-Term High-Quality Bond Securities Investment Trust, which was launched on the 12th.

This fund is a bond-type fund that constructs a stable portfolio centered on high-quality bonds such as bonds with a rating of AA- or higher, commercial paper (CP) with a rating of AA0 or higher, and short-term notes with a rating of A1 or higher, all maturing within one year.

With an average maturity of around six months, the fund is managed with a strategy that focuses on bonds with maturities of three months or less during periods of rising interest rates, and bonds with maturities between six months and one year during periods of falling interest rates, minimizing risks from interest rate fluctuations while seeking excess returns compared to MMFs.

The investment grade is classified as "low risk (grade 5)," making it a low-risk product that can guard against fluctuations in stock prices or bond yields. Its popularity is attributed to offering yields above market interest rates even for short-term deposits.

KCGI Asset Management stated, "In the current environment of ongoing short-term interest rate fluctuations, demand is increasing for ultra-short-term bond funds that offer low volatility risk and higher yields compared to market interest rates. Since its launch, it has attracted 100 billion KRW within just three days, drawing interest from investors seeking stability to avoid volatility and those weighing the timing of investing in equity funds."

This fund is purchased at the base price two business days after the subscription date if bought before 5 PM on the same day. Redemptions requested before 5 PM are processed at the base price three business days later, with redemption proceeds paid on the third business day. There are no redemption fees associated with redemptions.