KCGI Asset Management announced on the 17th that the redemption cycle of the KCGI Ultra-Short-Term High-Grade Bond Fund will allow next-day redemption.
KCGI Asset Management has advanced the redemption cycle of the KCGI Ultra-Short-Term High-Grade Bond Fund by one day, completing the report for the amendment of the collective investment regulations to allow redemptions before 5 PM to be paid on the second business day based on the price of the second business day. Customers can receive redemption proceeds the next day after applying for redemption, making it easier to secure liquidity.
The assets under management of the KCGI Ultra-Short-Term High-Grade Bond Fund amount to 135.6 billion KRW based on the subscription amount. The fund is managed with a stable portfolio by including high-grade bonds with a maturity of less than one year rated AA- or higher, electronic short-term bonds rated A1 or higher, and commercial papers (CP). The fund’s investment risk rating is 5 (low risk), and the total fee is 0.106% (based on Ae class).
A representative of KCGI Asset Management explained, "The KCGI Ultra-Short-Term High-Grade Bond Fund is composed of highly liquid bonds such as commercial papers, so advancing the redemption cycle by one day does not pose any operational difficulties, and this decision was made for customer convenience." They added, "There are no early redemption fees, and next-day redemption is possible like an MMF, making it highly useful for short-term investment fund management."
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