KB Asset Management Launches 'KB US ESG Dividend Aristocrats Fund'

[Asia Economy Reporter Hwang Yoon-joo] KB Asset Management launched the 'KB US ESG Dividend Aristocrats Fund' on the 30th.

KB Asset Management announced that starting from the 30th, applications for subscription to the 'KB US ESG Dividend Aristocrats Fund' will be accepted at KB Kookmin Bank and KB Securities. This fund is an index fund that tracks the 'S&P US ESG Dividend Aristocrats Index,' a representative dividend growth index in the US.

Amid increased market volatility due to the interest rate hike trend caused by concerns over economic slowdown, global dividend stocks with high financial stability and low volatility, which have strong defensive capabilities in a downturn, are gaining attention.

The 'KB US ESG Dividend Aristocrats Fund' integrates ESG with dividend stocks and focuses on long-term steady dividend-paying US companies. The difference from the previously launched US Dividend Aristocrats Fund is the use of ESG scores for stock selection. Unlike the existing US Dividend Aristocrats Fund, which mainly consists of large-cap stocks, the 'KB US ESG Dividend Aristocrats Fund' includes small and mid-cap stocks with strong value stock characteristics.

The tracked index, the 'US ESG Dividend Aristocrats Index,' first selects about 120 stocks from the S&P 1500 index, which accounts for about 90% of the US stock market, that have grown dividends consecutively for over 20 years. Among them, about 80 stocks are invested in by dividend yield weighting, excluding the bottom 25% ESG score stocks such as 'RPM International' (water-intensive companies, excessive carbon emitters) and certain industries contrary to ESG philosophy like 'Black Hills' (coal, tobacco, etc.).

The portfolio includes representative global energy companies like 'ExxonMobil,' IT infrastructure and cloud service providers like 'IBM,' global pharmaceutical/biotech companies like 'AbbVie,' and bedding and furniture manufacturers like 'Leggett & Platt.' It diversifies investments across various sectors such as consumer staples (22%), industrials (18%), financials (11%), consumer discretionary (9%), and healthcare (8%).

The fund is available in hedged (H) type to hedge risks from exchange rate fluctuations, unhedged (UH) type exposing assets to exchange rate fluctuations, and USD type investing in US dollars. Investors can choose among A type (1% front-end load, annual fee 0.995%), A-E type (0.5% front-end load, annual fee 0.695%, online exclusive), C type (no front-end load, annual fee 1.395%), and C-E type (no front-end load, annual fee 0.895%, online exclusive). It is also possible to subscribe through pension savings and retirement pensions.

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