KB Asset Management Launches 'KB Corporate Value Growth 40 Target Conversion Fund'

KB Asset Management has launched the ‘KB Corporate Value Growth 40 Target Conversion Fund (Bond Mixed Type)’, which selectively invests in companies expected to increase their corporate value.

The ‘KB Corporate Value Growth 40 Target Conversion Fund (Bond Mixed Type)’ is a product that seeks profitability through investment in undervalued value stocks and dividend stocks, while securing stability by investing approximately 60% in high-quality domestic bonds with a credit rating of ‘AA-’ or higher.

The target return rate is 6%. Once the cumulative operating return rate of the ‘C-’ retirement class reaches the target, all stock-related assets are sold, and the fund is converted into a bond re-subordinated fund (such as short-term bond ETFs, MMFs, etc.) that mainly invests in domestic bond-related assets.

Until the target return rate is reached, the fund employs a compressed portfolio strategy, selecting 1 to 2 core stocks per industry and investing in about 50 stocks.

Additionally, after identifying investment candidates considering competitiveness within the industry and industrial attractiveness, scores are assigned based on dividend payout ratio, dividend per share, and shareholder return yield, with concentrated investment in stocks with high scores.

For bonds, selective investment is made in highly liquid high-quality bonds to secure stability, with the added feature of capital gains from interest rate declines.

The ‘KB Corporate Value Growth 40 Target Conversion Fund’ is a bond mixed type with low volatility and is expected to yield high profitability through investment in stocks benefiting from value-up policies. Furthermore, since it converts to a bond re-subordinated fund upon achieving the target return, it is suitable for pension investors seeking stable returns.

Yook Dong-hwi, Head of Pension WM Division at KB Asset Management, said, “Since the introduction of the value-up program last year, a consensus on enhancing shareholder value has been formed in the Korean stock market,” adding, “The ‘KB Corporate Value Growth 40 Target Conversion Fund (Bond Mixed Type)’ selectively invests in stocks with high shareholder return attractiveness while also investing in high-quality domestic bonds, which can help investors make efficient investments.”

The ‘KB Corporate Value Growth 40 Target Conversion Fund (Bond Mixed Type)’ will be offered through KB Kookmin Bank, KB Securities, Shinhan Investment Corp., and others until March 6, with the fund establishment scheduled for the following day, March 7.