Kiwoom Asset Management's 'Kiwoom The Dream Short-Term Bond Fund' Surpasses 2 Trillion KRW in Net Assets

by Ryu Hyunseok

Published 14 Oct.2024 10:47(KST)

Kiwoom Asset Management announced on the 14th that the assets under management of the Kiwoom The Dream Short-Term Bond Fund have surpassed 2 trillion won.

Launched in December 2017, the Kiwoom The Dream Short-Term Bond Fund has achieved steady performance despite increased interest rate volatility, attracting over 1 trillion won in funds this year alone and reaching 2 trillion won in net assets. This is the largest scale among domestic short-term bond funds. The key strategy behind the fund inflow is managing maturities to be relatively short to minimize interest rate volatility risk and generate excess returns, even amid the recent frequent stock market uncertainties.

The Kiwoom The Dream Short-Term Bond Fund maintains an average remaining maturity of around six months for its portfolio assets, primarily investing in corporate commercial paper (CP) rated A2- or higher, electronic short-term bonds, and corporate bonds rated A- or above, aiming for a higher expected yield to maturity (YTM) compared to similar short-term investment products. Since 2022, a proactive response to concerns over real estate PF-related assets has been a major differentiator, as the fund currently does not include construction companies or PF-related assets.

Since its inception, the cumulative return (Class A, pre-tax, after fees) as of October 14 stands at 20.23%. It has achieved an excess return of 4.60 percentage points compared to the benchmark index (MK Money Market Index). Period returns are △3 months 0.98%, △6 months 2.17%, △1 year 4.86%, and △3 years 11.72%.

Fund manager Son Hee-kyung stated, “The fund plans to continuously extend duration relative to the benchmark index (MK Money Market Index) in anticipation of at least one base rate cut within the year, preparing for a rate-cutting phase.” She added, “With the expectation that the money market will ease after the quarter-end, credit demand is expected to continue flowing in due to rate cut expectations.” She further noted, “We will seek selective asset inclusion opportunities through bargain buying by leveraging the short-term market environment.”