Eastspring Asset Management Launches 'Naeil Redemption Ultra-Short-Term Bond Fund'

Eastspring Asset Management Korea announced on the 14th that it will launch the ‘Tomorrow Redemption Ultra-Short-Term Bond Fund,’ which simultaneously pursues stability, profitability, and liquidity through rapid redemption, strategic portfolio management, and interest rate phase-specific responses.

The Tomorrow Redemption Ultra-Short-Term Bond Fund features a short redemption cycle and no redemption fees, similar to a Money Market Fund (MMF), making it advantageous for securing liquidity. Investors who apply for redemption before 5 p.m. on the transaction day can receive the redemption proceeds within 2 business days at the T+1 base price from the redemption request date.

This fund primarily invests in high-quality bonds rated AA- or higher, A1-rated commercial papers, and short-term bonds, while selectively investing in A2-rated commercial papers to pursue both stability and profitability. Additionally, it invests in securities with higher maturity yields within the same sector or maturity through relative value analysis and generates additional income through repurchase agreement bond sales.

The Tomorrow Redemption Ultra-Short-Term Bond Fund maintains the average recovery period (duration) of invested funds at around 0.3 years to minimize risks from market interest rate fluctuations. It flexibly adjusts investment strategies according to interest rate phases to provide stable returns.

During periods of rising interest rates, the fund increases the proportion of ultra-short-term assets to reduce interest rate volatility risk, while in falling interest rate periods, it extends duration to pursue both capital gains and interest income. In periods of stable interest rates, it expands the proportion of high-interest assets and selectively includes securitized assets and A2-rated commercial papers to secure maturity yields.

Park Cheon-ung, CEO of Eastspring Asset Management Korea, explained, "As the domestic financial market continues to experience extreme volatility, interest in investment options that combine liquidity, stability, and profitability is increasing." He added, "We expect the Tomorrow Redemption Ultra-Short-Term Bond Fund to provide investors with opportunities for stable income and flexible asset management."

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