KB Asset Management Launches 'KB Dreamstar Asset Allocation Stable Fund'

KB Kookmin Bank Investment Advisory Service Combined
Retirement Pension Fund Diversified Across Various Asset Classes

KB Asset Management announced on the 5th that it has launched the ‘KB Dreamstar Asset Allocation Stable Fund’.

The ‘KB Dreamstar Asset Allocation Stable Fund’ is a retirement pension fund that combines KB Asset Management’s management capabilities with KB Kookmin Bank’s global investment advisory services.

It diversifies investments across various assets such as global stocks, bonds, and commodities to reduce volatility, and seeks stable returns by limiting the proportion of risky assets to around 40%.

For this fund, KB Kookmin Bank provides asset allocation advice, and KB Asset Management finalizes market outlooks and detailed strategies for each asset class to construct the portfolio.

Looking at the initial portfolio, it diversifies investments into global stocks (35%) and bonds (55%). The stocks are composed of developed countries (25%), Korea (5%), and emerging markets (5%). Bonds are divided into domestic (45%) and overseas (10%). The remaining 10% is invested in liquid assets such as money market funds (MMFs).

The fund can be subscribed to through KB Kookmin Bank’s retirement pension accounts. To manage risks from exchange rate fluctuations, foreign currency-denominated risk-free assets (such as bonds and other fixed interest foreign currency assets) are hedged against currency risk. Investors can choose between the C-Retirement type (annual fee 0.635%) with no front-end load and the C-Retirement e type (annual fee 0.485%, online exclusive).

Lee Seok-hee, Executive Director of the Pension WM Division at KB Asset Management, said, “This is the first fund collaborated with KB Kookmin Bank. It offers broad global coverage by diversifying investments across various countries and assets at a low cost,” adding, “It is a suitable product for pension and retirement pension customers for whom long-term stable investment is important.”

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