KB Asset Management Launches 'KB Miguk Janggi Chaegwon 10nyeon Plus Fund'

KB Asset Management announced on the 8th the launch of the ‘KB US Long-Term Bond 10-Year Plus Fund’.

The ‘KB US Long-Term Bond 10-Year Plus Fund’ is a product that invests in US Treasury bonds and other securities to secure stable interest income, and seeks excess returns through long-term bond investments with significant duration effects when interest rates decline.

This product, which is also KB Asset Management’s first US long-term bond fund, was conceived based on the expectation that the investment performance of US long-term bonds will be strong, supported by the anticipation of the end of US interest rate hikes.

The ‘KB US Long-Term Bond 10-Year Plus Fund’ is composed of US Treasury bonds with a remaining maturity of 10 years or more (30%), US Treasury-related exchange-traded funds (ETFs) (30%), high-quality corporate bonds (35%), and quasi-government bonds (5%). The intention is to enhance stability by investing in US long-term Treasury bonds and government agency bonds with maturities of 10 years or more, and to secure higher interest income compared to bonds denominated in other advanced country currencies.

Additionally, the fund aims to increase profitability by selectively investing in highly liquid, high-quality corporate bonds with an international credit rating of ‘A-’ or higher, and to generate alpha (α) returns through active management. Furthermore, it pays attention to portfolio diversification by diversifying investments into relatively stable assets such as long-term US quasi-government bonds, advanced country bonds denominated in US dollars, and international organization bonds.

Lee Seok-hee, Head of Pension WM Division at KB Asset Management, said, “The ‘KB US Long-Term Bond 10-Year Plus Fund,’ which invests in US long-term bonds, has a target duration of about 15 years,” adding, “It will provide investors with an efficient investment opportunity during periods of interest rate declines.”

The ‘KB US Long-Term Bond 10-Year Plus Fund’ is divided into a currency-hedged type (H) and a currency-exposed type (UH). It is available for subscription from today at KB Kookmin Bank, KB Securities, and Korea Investment & Securities, with plans to expand the sales channels in the future.