KB Credit Alpha Short-Term Bond No. 1 Delivers Outstanding Short-Term Performance

KB Asset Management announced on August 25 that the "KB Credit Alpha Short-Term Bond Fund No. 1" has garnered attention for its outstanding short-term performance since its inception.

The recent one-month and three-month returns of the KB Credit Alpha Short-Term Bond Fund No. 1 were recorded at 0.36% and 1.06%, respectively. This ranks first among 47 domestic short-term credit bond-type funds.

Leveraging its extensive experience and expertise in managing large-scale short-term funds, KB Asset Management constructed a portfolio focused on high-quality credit bonds. Launched in May, the KB Credit Alpha Short-Term Bond Fund No. 1 primarily invests in high-quality short-term corporate bonds, short-term bonds, and commercial papers, aiming to reduce interest rate sensitivity and pursue stable returns.

By mainly investing in bonds with maturities of 1.5 years or less, the fund minimizes risk even during periods of rising interest rates, while also expecting relatively improved returns compared to ultra-short-term bonds when the base rate is lowered. The fund flexibly responds to interest rate trends by utilizing the relative attractiveness of short-term bonds in the event of further base rate cuts.

The management strategy follows KB Asset Management’s systematic process based on professional research and market analysis. In addition, it employs a combination of duration strategies, credit strategies, sector allocation strategies, and repo selling strategies.

The main fund of the KB Credit Alpha Short-Term Bond Fund No. 1 currently manages 117.6 billion KRW in assets and continues to deliver solid performance.

Yook Donghui, Head of Pension WM Division at KB Asset Management, explained, "KB Asset Management is stably operating a variety of short-term fund products based on its specialized management capabilities and abundant assets in short-term interest rate products." He added, "The experience accumulated through various products such as public money market funds (MMF), short-term bond ETFs, and short-term public bonds has become the foundation for securing both profitability and stability for the 'KB Credit Alpha Short-Term Bond Fund.'"

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