KB Korea Up-and-Down Target Management Target Maturity No.1 Fund Launched

On December 1, KB Asset Management announced that it would launch a target maturity fund designed in partnership with KB Kookmin Bank to pursue stable returns amid market volatility.

The "KB Korea Up-and-Down Target Management Target Maturity Fund" invests less than 50% in equity exchange-traded funds (ETFs) and more than 50% in bond ETFs, aiming to capture profits when the domestic stock market rises while also seeking stable interest income from bond investments.

The fund features a target management strategy that operates within a target return of 7% and a loss limit of -7%, allowing it to respond flexibly to market fluctuations.

The fund primarily invests in the KOSPI200 index, the market's representative index (approximately 30%), and also diversifies into sector and theme-related ETFs with strong momentum (about 20%) to pursue active excess returns compared to the market. In addition, it invests about 50% in high-quality bonds, such as domestic short-term bond ETFs, to ensure stability.

Once the target return of 7% is reached, all equity-related assets are sold and the fund is converted into a bond fund-of-funds.

If the fund's return turns negative due to a decline in the stock market, the equity allocation is gradually reduced to defend against further losses. If a 7% loss is reached, the fund applies a loss cut structure by selling equity-related assets and converting to a bond fund-of-funds, thereby managing investors' loss risk.

Beom Gwangjin, Head of Pension WM Division at KB Asset Management, stated, "Considering the structural improvement of the capital market and the improved performance of export-oriented companies, there is ample room for further gains in the domestic stock market. However, to ease the burden for investors who are hesitant due to concerns about market peaks, we have introduced a loss cut structure."

A KB Kookmin Bank representative said, "The KB Korea Up-and-Down Target Management Target Maturity Fund embodies KB Financial Group's customer-centric philosophy by managing not only returns but also loss risk for our clients. We will continue to do our best to help customers grow and manage their assets in a rapidly changing market environment."

The KB Korea Up-and-Down Target Management Target Maturity (Bond Mixed-Fund-of-Funds) Fund can be subscribed to at KB Kookmin Bank. Subscriptions are open until December 11, and the fund will be established on December 12.

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