KB Asset Management's 'KB Money Market Active' Tops Net Assets Among Ultra-Short-Term Bond Funds

KB Asset Management's 'KB Money Market Active Fund' has surpassed 1 trillion KRW in net assets, ranking first in net asset size among domestic ultra-short-term bond funds excluding exchange-traded funds (ETFs). It is steadily attracting funds as a parking option during the rebalancing of domestic pension assets.

The 'KB Money Market Active Fund' primarily invests in high-interest quality bonds with maturities of about three months or less. Compared to the representative short-term investment product, the money market fund (MMF), it faces fewer restrictions on asset inclusion, allowing for more active asset allocation.

It invests more than 60% in short-term bonds and commercial paper (CP), and up to 40% in liquid assets, with the advantage of no redemption fees, enabling investors to withdraw funds whenever they wish.

Typically, domestic short-term bond funds require three business days for redemption, but the 'KB Money Market Active Fund' offers redemption proceeds in just two days, providing relatively higher liquidity. Additionally, it maintains a duration comparable to MMFs, resulting in lower interest rate volatility compared to short-term bond funds.

Last year, KB Asset Management unusually launched both a fund and an ETF ultra-short-term bond product simultaneously. This differentiates it from most themed new products that have gained popularity in recent years, which have been primarily ETF-focused.

The 'RISE Money Market Active ETF' also recently surpassed 2 trillion KRW in net assets, bringing the total net assets of the 'KB Money Market Series' to over 3 trillion KRW.

The market views the strategy of simultaneously launching the 'KB Money Market Active Fund' and the 'RISE Money Market Active ETF' to expand investors' choices as a successful move.

Lee Seok-hee, Head of Pension WM Division at KB Asset Management, said, "The implementation of the retirement pension cash transfer system has activated the movement of pension assets," adding, "'KB Money Market Active Fund' will play a key role in the rebalancing process of various pension assets such as pension savings, individual retirement pensions (IRP), and individual savings accounts (ISA)."

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