Redemption Payments Up to 4 Days Faster
Enhanced Liquidity for Investors
Significantly Shortened Redemption Payment Schedule
Applies to a Total of 78 Funds Including U.S. and Global Funds
On September 11, KB Asset Management announced that it will significantly shorten the redemption cycle for 78 types of overseas public offering funds to improve investment convenience and accessibility. Investors in KB Asset Management funds will now be able to receive redemption payments 1 to 4 business days faster than before.
In today’s rapidly changing domestic and international market environment, liquidity and securing investment opportunities are crucial factors that determine investment performance. KB Asset Management expects that shortening the fund redemption cycle will help investors respond more effectively to changing market conditions. Additionally, this measure aligns with the government’s emphasis on protecting the rights and interests of financial consumers. It is expected to contribute to creating an investor-centric management environment.
Starting September 11, KB Asset Management will shorten the redemption cycle for U.S. and global fund products, and will expand this to major pension products beginning October 21. The first phase will apply to U.S. equity and derivative index funds, with redemption payments now made within 4 business days-1 to 4 business days faster than before. The redemption price will be based on the third business day.
For global active equity funds, ETF Managed Portfolio (EMP) funds, and asset allocation funds, the redemption payment period will be reduced from 8 business days to 5 business days. U.S. bond funds will also see the redemption payment period shortened by one business day, now paid within 5 business days, with the redemption price based on the fourth business day.
The affected funds include 44 products such as KB US Leading Growth Stocks, KB US ESG Dividend Aristocrats, KB Core Growth Asset Allocation, KB Global AI Metaverse Tech, KB Global Equity Solution EMP, KB Global Technology EMP, KB Target Return Conservative OCIO, and KB US Long-Term Treasury Plus.
The second phase will apply to 34 major pension products, including KB Dynamic and KB OnGukmin TDF, and Target Income Fund (TIF). From October 21, the redemption payment period for these products will be reduced from 8 business days to 5 business days.
Jang Soonmo, Head of Product Strategy at KB Asset Management, explained, "Based on our experience of launching the industry’s first KB Money Market Active Fund, which pays redemption proceeds the day after the redemption request and helped establish the ultra-short-term bond fund market, we are now significantly shortening the redemption payment schedule for our funds."
He added, "We have completed the product remodeling, and going forward, we will continue to prioritize investor protection and profit enhancement while supplying competitive products."
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