KB Asset Management Launches 'KB US Short-Intermediate Treasury Fund'

KB Asset Management announced on the 13th the launch of the ‘KB US Medium-Short Term Treasury Bond Fund,’ which invests in US medium-short term government bonds.

This fund is suitable for investors seeking to manage interest rate rise risks while pursuing performance from interest rate declines.

The ‘KB US Medium-Short Term Treasury Bond Fund’ primarily invests in US Treasury bonds with maturities of 3 to 7 years (30%) and related ETFs (70%). It aims for stable interest income through pure US medium-short term Treasury bond investments with an average credit rating of ‘AA+’ without including credit or other risky assets.

Medium-term bonds have lower interest rate sensitivity and volatility compared to long-term bonds, allowing for more stable returns. During periods of interest rate declines, additional capital gains can also be pursued. Historically, US medium-short term Treasury bonds have delivered superior performance with lower volatility compared to long-term bonds during interest rate cut periods.

The fund invests in US dollar-denominated bonds with relatively high interest rates among developed countries, enabling higher interest income compared to bonds denominated in other developed country currencies.

Additionally, due to its low correlation with stocks, it has the characteristic of relatively preserving investors’ assets during stock market corrections caused by economic recessions.

Yook Dong-hwi, Head of Pension WM Division at KB Asset Management, said, “US interest rates are expected to gradually decline and reach a neutral level by 2027. The ‘KB US Medium-Short Term Treasury Bond Fund,’ with a target duration of about 5.5 years, will provide an efficient investment opportunity by reducing volatility during periods of interest rate cuts.”

The ‘KB US Medium-Short Term Treasury Bond Fund’ is available in two types: currency-hedged (H) and currency-exposed (UH). It is currently available for subscription at KB Kookmin Bank, and the list of distributors will be expanded in the future.

There is a possibility of principal loss depending on the fund’s performance upon subscription to the ‘KB US Medium-Short Term Treasury Bond Fund.’

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