Kyobo AXA Asset Management Launches Global Strategic Bond Fund Priced in US Dollars

[Asia Economy Reporter Minji Lee] Kyobo AXA Asset Management announced on the 15th that it will launch the ‘Kyobo AXA Global Strategic Bond Fund.’ The Kyobo AXA Global Strategic Bond Fund is a fund that invests indirectly in ‘AXA WF Global Strategic Bonds,’ which has been managed by the global asset manager ‘AXA IM’ since 2012.

In a situation where global asset price volatility is increasing, domestic asset owners have been steadily increasing the proportion of safe assets such as gold or dollar deposits in their portfolios, but almost no returns have been generated except for asset price appreciation. Dollar deposits are also close to zero interest rates due to low interest rates.

The Global Strategic Bond Fund launched by Kyobo AXA Asset Management can achieve stable returns with low volatility by investing in bonds worldwide. This fund can invest in various bonds such as government bonds, inflation-linked bonds, investment-grade bonds, high-yield bonds, and emerging market bonds. It views the constantly repeating and changing economic conditions as slowdown, recession, recovery, and expansion phases, and actively adjusts the bond portfolio according to each economic phase. During recession phases, it increases the proportion of safe assets such as government bonds, and during expansion phases, it increases the proportion of high-yield bonds. Risks such as interest rate hikes are hedged using interest rate futures.

Lee Sang-jin, Head of Channel Sales Division, stated, “It is important to operate dollar assets by investing in assets such as bonds to generate some returns, and especially domestic corporations should not just hold dollar assets but operate them through products that allow some level of management. Also, the KRW-denominated currency-hedged type is considered the most suitable product for investors who want returns above market interest rates or pension investors seeking stable long-term returns.”

The Kyobo AXA Global Strategic Bond Fund charges a front-end sales fee of 0.7% and an annual total fee of 0.755% for Class A. Class C has no front-end sales fee and an annual total fee of 1.155%. The dollar-denominated fund can be subscribed to at KB Kookmin Bank, and investors who want KRW currency hedging can subscribe to the currency-hedged fund at Kyobo Securities, Hyundai Motor Securities, KB Securities, and KB Kookmin Bank.

This content was produced with the assistance of AI translation services.