'These Are the Funds for Q3' KB Asset Management Proposes Seven Tailored Funds

On July 4, KB Asset Management proposed seven strategic funds to assist investors facing difficulties in selecting products due to changes in the domestic and global economic environment and increased uncertainty in financial markets.

The company structured its portfolio around policy changes following the launch of a new administration, shifts in the global trade environment, the trend of interest rate cuts, and the strengthening of ESG (Environmental, Social, and Governance) initiatives. In the third quarter of this year, KB Asset Management newly recommended two funds?'KB ESG Growth Leaders' and 'KB ESG High-Quality Short-to-Mid-Term Bonds'?in addition to the existing five products.

First, 'KB ESG Growth Leaders' is a product that invests in high-quality domestic companies with strong potential for sustainable growth, based on in-depth analysis of ESG factors. The fund selectively invests in ESG leader companies in line with the advancement of the domestic capital market, such as amendments to the Commercial Act, improvements in corporate governance, and policies to strengthen ESG. Its performance has also been strong, with three-month and six-month returns of 36.9% and 45.0%, respectively.

'KB ESG High-Quality Short-to-Mid-Term Bonds' is a short-to-mid-term bond fund primarily composed of government bonds and high-quality corporate bonds rated 'A+' or above. It aims to achieve both stable interest income and capital gains during periods of interest rate cuts. Investments are made with consideration of the issuer's sustainability based on ESG criteria.

For domestic investment strategy funds, the company recommended products that invest in high-quality domestic stocks likely to benefit from the government's pro-market policies. It suggested funds such as 'KB Korea Value-Up Active' and 'KB Star Korea Value-Up Index,' which invest in high-quality domestic companies with attractive dividends and undervalued stock prices.

As for overseas investment strategy products, while maintaining a preference for innovative companies, the company highlighted 'KB US Leading Growth Stocks,' which focuses on leading US innovative technology companies in fields such as artificial intelligence (AI), cloud computing, and autonomous driving. This recommendation is based on the expectation that trends in AI and advanced technology, as well as US-led growth, will continue, despite concerns over renewed trade conflicts and uncertainties in tariff policies.

The company also proposed a US short-to-mid-term bond product that can offer stable returns compared to deposits when interest rates decline. 'KB US Short-to-Mid-Term Treasury Bonds' primarily invests in US short-to-mid-term government bonds and related exchange-traded funds (ETFs) without including risk assets such as credit, aiming for stable cash flow and low volatility.

For investors concerned about market uncertainties such as domestic and global interest rate policies, geopolitical risks, and the direction of global liquidity, the company recommended products based on a global diversification strategy. 'KB Global Leading Asset Diversification' is a fund that pursues both stability and growth by adopting a traditional asset allocation strategy?60% equities and 40% bonds?along with regional and asset-specific investments across the US, Europe, and emerging markets.

Jang Soonmo, Head of Product Strategy at KB Asset Management, stated, "The third quarter is a period when ESG trends, policy benefits, and expectations for interest rate cuts are all at play," adding, "The seven strategic funds proposed this time can provide options tailored to investors' preferences and portfolio objectives while responding to structural changes in the market."