KB Asset Management, 'KB US Long-Term Treasury Plus Fund' Achieves Excellent Returns

As expectations for a U.S. interest rate cut expand, investor interest is focusing on U.S. Treasury products, with the ‘KB U.S. Long-Term Treasury Plus Fund’ gaining attention for its outstanding performance.

KB Asset Management announced on the 19th that the ‘KB U.S. Long-Term Treasury Plus Fund’ recorded a recent 1-month return of 5.39%. Launched in April, the ‘KB U.S. Long-Term Treasury Plus Fund’ is KB Asset Management’s first U.S. long-term bond fund.

The fund invests in U.S. Treasuries to secure stable interest income and pursues excess returns through long-term bond investments with high duration effects when interest rates decline. The product is based on the expectation that U.S. long-term bonds will perform well following the end of the U.S. interest rate hike cycle.

The fund is composed of U.S. Treasuries and Treasury-related ETFs with a remaining maturity of 10 years or more (60%), high-quality corporate bonds (35%), and quasi-government bonds (5%).

Additionally, it selectively invests in highly liquid, top-tier corporate bonds with credit ratings of ‘A-’ or higher, such as Berkshire Hathaway, Microsoft, and JP Morgan, to enhance profitability, aiming to generate alpha (α) returns through active management.

Moreover, the portfolio is diversified by investing in relatively stable assets such as long-term U.S. quasi-government bonds, U.S. dollar-denominated developed country bonds, and international organization bonds.

Lee Seok-hee, Head of Pension WM Division at KB Asset Management, said, “As concerns about an economic recession accelerate, interest in long-term bonds is increasing,” adding, “The ‘KB U.S. Long-Term Treasury Plus Fund’ will provide investors with an efficient investment opportunity during the period of interest rate cuts.”

The ‘KB U.S. Long-Term Treasury Plus Fund’ is available in hedged (H) and unhedged (UH) versions. It can be subscribed to through KB Kookmin Bank, KB Securities, Korea Investment & Securities, Woori Investment & Securities, Busan Bank, and BNK Kyongnam Bank.