KB Securities 'Direct Indexing', Corporate Value-Up Theme Preset Open

Proposing Customized Thematic Portfolios Leveraging the Strengths of Direct Indexing

KB Securities announced on the 7th that it has newly launched the 'Corporate Value-Up Low PBR & Undervalued Stocks' preset, focusing on undervalued stocks that have recently attracted market attention, through its 'KB Securities Direct Indexing' service.

KB Securities Direct Indexing is a new type of investment service that allows investors to directly compose and manage their personal portfolios according to their preferences, investment tendencies, and investment objectives.

Recently, investor interest in value stocks with low price-to-book ratios (PBR) has surged following the government's announcement of the 'Corporate Value-Up Program.' Benchmarking Japan's stock price rise experience after implementing a similar policy last year, the government is concretizing stock price boosting policies centered on shareholder returns and governance improvements. This aims to resolve the issue of the Korean stock market being undervalued due to significantly lower PBR compared to major countries.

Against this backdrop, KB Securities quickly selected stocks with currently low PBR that are undervalued listed common stocks with a high proportion of treasury shares, which could benefit from a future revaluation of Korean stocks, and included them in the Corporate Value-Up Low PBR & Undervalued Stocks preset (Pre-set, an example portfolio pre-proposed by investment experts) through the Direct Indexing service. This includes holding companies, financial firms, and companies with a high proportion of treasury shares.

KB Securities portfolio experts diagnose that it is necessary to consider not only simple low PBR stocks but also profitability indicators such as return on equity (ROE), governance, and the proportion of treasury shares in a comprehensive manner. They plan to select expected beneficiaries of the Korea Premium Index related to the Korea Discount (the undervaluation phenomenon of the Korean stock market) next month and continue to provide related presets.

The KB Securities Direct Indexing service proposes new investment strategies that quickly reflect market trends to investors through its carefully selected 'KB’s Pick.' In particular, since last year, themes such as K-semiconductor materials·components·equipment(SoBuJang) related to the rise of semiconductor stocks and global mega trends like artificial intelligence (AI) related presets have also been included in KB’s Pick.

Yoon Man-chul, Head of Customer Solutions at KB Securities, said, "The KB Securities Direct Indexing service maximizes the advantage of providing faster investment strategies to customers through KB Securities’ mobile trading system (MTS), KB M-able (M-able)." He added, "We will also expand the service through face-to-face private bankers (PBs) in the future and continue to focus on customized asset management solutions for customers."

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