KB Asset Management's domestic equity fund performance has recently shown remarkable improvement. It appears that the active enhancement of research capabilities to boost fund returns since the beginning of this year is paying off.
In particular, combined with the gradual resolution effect of the Korea discount, the ‘KB Shareholder Value Focus Fund’ is gaining attention for its excellent returns.
According to fund rating agency FnGuide on the 4th, as of the 30th of last month, the ‘KB Shareholder Value Focus Fund’ recorded stable performance with 6-month and year-to-date returns of 9.52% and 11.34%, respectively.
Launched in 2018, the ‘KB Shareholder Value Focus Fund’ is a product that selectively invests in undervalued companies expected to see stock price appreciation based on excellent shareholder policies through quantitative and qualitative shareholder value analysis. It actively incorporates Environmental, Social, and Governance (ESG) factors, which are key indicators for assessing the sustainability of corporate growth, into its investment process.
Through in-depth research on target companies, the fund constructs its portfolio by analyzing whether companies actively implement shareholder-friendly policies such as dividends, share repurchase policies, and governance improvement commitments.
Recently, alongside social movements aimed at resolving the Korea discount, companies with rich asset and earnings value, strong cash flow, and active shareholder returns have attracted attention, leading to improved fund management performance.
KB Asset Management’s outstanding research capabilities have also played a crucial role in this performance improvement. Early this year, to expand assets under management and improve returns in the equity management division, KB Asset Management strengthened its research by recruiting Yang Seung-hoo, a director with extensive experience as an analyst and fund manager at asset management firms.
Since then, by expanding corporate analysis coverage and striving to enhance fund returns, there is an evaluation that the overall performance of domestic equity funds, including the ‘KB Shareholder Value Focus Fund,’ is improving.
Looking at the recent sector allocation of the ‘KB Shareholder Value Focus Fund,’ Information Technology (IT) accounts for the largest portion at 34.51%, followed by Financials at 14.78%, and Transportation Equipment at 12.41%.
By individual stock weight, Samsung Electronics (14.24%), Samsung Electronics Preferred (8.29%), SK Hynix (7.27%), Hyundai Motor 2nd Preferred B (6.70%), and Shinhan Financial Group (5.79%) rank at the top.
The ‘KB Shareholder Value Focus Fund’ is currently available for subscription at major domestic banks and securities firms including KB Kookmin Bank, KB Securities, Shinhan Bank, Busan Bank, Korea Investment & Securities, Hana Securities, and Kyobo Securities.
Yang Seung-hoo, Director of Research at KB Asset Management, said, "We expect external uncertainties to persist in the second half of the year, so while focusing on risk management, we will continuously discover investment ideas by concentrating more on corporate fundamentals. As our company possesses the industry's largest and most excellent research personnel, we expect to continue delivering favorable performance going forward."
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