KB US Mid-Short Term Treasury Fund Surpasses 60 Billion Won in Net Assets

KB Asset Management announced on the 27th that the net asset value of the 'KB US Mid-Short Term Treasury Fund' has surpassed 60 billion won.

Amid rising expectations for global interest rate cuts and increasing demand for safe assets, the fund is gaining attention as an investment alternative capable of delivering stable performance even in volatile markets. Approximately 20 billion won has flowed into the fund over the past three months.

The KB US Mid-Short Term Treasury Fund is the only mid-short term treasury fund in the domestic asset management industry that primarily invests in US Treasuries with maturities of 3 to 10 years (30%) and related ETFs (70%). The fund does not include risk assets such as credit bonds, instead investing in pure US Treasuries with an average credit rating of 'AA+', aiming for stable interest income.

According to fund evaluation agency FnGuide, the three-month return of the KB US Mid-Short Term Treasury Fund (UH) was 7.57%, demonstrating strong performance even during periods of short-term interest rate fluctuations.

Mid-term bonds have lower interest rate sensitivity and volatility compared to long-term bonds, allowing for the expectation of stable returns, and they can also offer additional capital gains during periods of rate cuts. In fact, US mid-short term Treasuries have shown solid performance with lower volatility than long-term bonds during previous rate cut cycles.

The KB US Mid-Short Term Treasury Fund invests in US dollar-denominated bonds with high interest rates, enabling it to secure higher interest income compared to bonds denominated in other major currencies. In addition, because of its low correlation with equities, the fund can help protect investor assets from stock market adjustments during economic downturns.

Yeon Chi-sang, Head of Global Fixed Income at KB Asset Management, explained, "Although the release of key economic indicators is being delayed due to the US government shutdown, upward inflationary pressure from tariffs appears to be limited, contrary to market concerns." He added, "Considering these trends, there is a strong possibility of two rate cuts by the end of the year and additional cuts in the first half of next year."

He further emphasized, "With a current duration of about 6.0 years, the 'KB US Mid-Short Term Treasury Fund' will provide efficient investment opportunities while reducing volatility even during periods of rate cuts."

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