Ultra-short-term bond fund ‘KB Money Market Active’ attracts 270 billion KRW inflow in 6 months

KB Asset Management announced on the 15th that the ‘KB Money Market Active Fund (Bond)’ has attracted approximately 270 billion KRW in funds within six months of its launch. It appears that market liquidity funds flowed into ultra-short-term bond products due to uncertainties in the investment market.

The ‘KB Money Market Active Fund (Bond)’ primarily invests in high-interest, high-quality bonds maturing within about three months. Compared to the representative short-term investment product, the Money Market Fund (MMF), it has fewer restrictions on the assets it can hold, allowing for more active asset allocation. This fund invests more than 60% in short-term bonds and commercial paper (CP), and up to 40% in liquid assets. There are no redemption fees, so investors can withdraw their funds whenever they wish.

Typically, domestic short-term bond funds take three business days for redemption, but this product allows investors to receive redemption proceeds within one to two days. It also has lower interest rate volatility compared to short-term bond funds. Since its inception, the annualized yield as of the 13th has been approximately 4.15%, showing superior performance compared to MMFs.

Lee Seok-hee, Head of Pension WM Division at KB Asset Management, said, “The price volatility due to interest rate changes is relatively low. While bank fixed deposits require the agreed period to be completed to receive full interest, this fund offers higher returns than MMFs even with just one day of investment, making it an attractive product for investors seeking short-term investment options.”

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