KB Asset Management's 'KB US Long-Term Treasury Plus Fund' Surpasses 100 Billion Won

KB Asset Management's first US long-term government bond fund, the ‘KB US Long-Term Government Bond Plus Fund,’ surpassed 100 billion KRW in assets under management within six months of its launch.

The ‘KB US Long-Term Government Bond Plus Fund’ is a product based on the expectation that long-term bonds will perform well following the end of US interest rate hikes. It invests in US government bonds to secure stable interest income and pursues excess returns through long-term bond investments with significant duration effects when interest rates decline.

As the US Federal Reserve (Fed) has begun cutting interest rates, the fund's performance has also improved. The fund's recent 6-month return is 4.90%, boasting the best performance among funds of the same type.

The fund is composed of US government bonds and government bond-related ETFs with a remaining maturity of 10 years or more (60%), high-quality corporate bonds (35%), and quasi-government bonds (5%).

Additionally, it selectively invests in highly liquid, top-tier corporate bonds with credit ratings of ‘A-’ or higher, such as Berkshire Hathaway, Microsoft, and JP Morgan, to enhance profitability, while aiming to generate alpha (α) returns through active management.

Moreover, the fund pays attention to portfolio diversification by diversifying investments into relatively stable assets such as long-term US quasi-government bonds and international organization bonds.

Lee Seok-hee, Head of Pension WM Division at KB Asset Management, explained, "Interest in long-term bonds is increasing amid expectations of further US interest rate cuts," adding, "During periods of rate cuts, corporate bond investments are also gaining attention as companies' interest burdens decrease, positively impacting corporate bonds." He further stated, "The KB US Long-Term Government Bond Plus Fund will provide investors with efficient investment opportunities during the US interest rate cut period."

The KB US Long-Term Government Bond Plus Fund is divided into a currency-hedged type (H) and a currency-exposed type (UH). It is available for subscription at KB Kookmin Bank, KB Securities, Korea Investment & Securities, Woori Investment & Securities, Busan Bank, and BNK Kyongnam Bank.

원본보기 아이콘

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.