BNK Asset Management Launches Ultra-Short-Term Bond Fund with Next-Day Redemption

BNK Asset Management announced on the 17th the launch of the 'BNK Naeil Redemption Ultra-Short-Term Bond Fund,' which partially changes the strategy and name of the existing BNK Ttuntteun Short-Term Bond Fund.

This is an ultra-short-term strategy product based on a short duration within domestic bond funds, aiming to minimize risks from interest rate fluctuations while achieving stable returns.

The BNK Naeil Redemption Ultra-Short-Term Bond Fund offers redemption without fees and pays redemption proceeds on the next business day if redeemed before 5 PM. It provides liquidity comparable to MMFs. The portfolio is optimized for short-term fund management, mainly composed of bonds with short remaining maturities and commercial papers (CPs).

By including credit bonds rated A- or higher, it expects stable carry returns, and by investing in short-maturity promissory notes and commercial papers rated A2- or higher, it simultaneously pursues profitability and stability.

During periods of rising interest rates, it seeks additional returns by rolling over into high-interest assets through rapid maturity turnover, and during periods of falling interest rates, it pursues capital gains by selling held assets, allowing for a flexible profit strategy according to market conditions.

A BNK Asset Management official stated, "As volatility in domestic and international financial markets increases, interest in ultra-short-term bond funds that balance asset stability, profitability, and liquidity is growing," adding, "We expect the BNK Naeil Redemption Ultra-Short-Term Bond Fund to assist investors in managing short-term funds."