KB Asset Management Launches "KB New High Dividend Fund"

KB Asset Management announced on April 14 that it has launched a domestic equity fund, "KB New High Dividend Equity Investment Trust," which simultaneously invests in companies benefiting from the separate taxation of dividend income and in growth value stocks.

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This fund selectively invests in high-dividend stocks that benefit from the separate taxation of dividend income (at least 60%), companies with reduced dividends, and growth value stocks with strong structural growth potential. Its strategy seeks both stable dividend income and capital gains, thereby differentiating itself from traditional high-dividend funds with a unique "K-high dividend strategy."

The management strategy of the KB New High Dividend Fund can be summarized in three main points. First, it focuses on stocks that meet the requirements for separate taxation of dividend income, such as companies with a dividend payout ratio of 40% or more, or those with a payout ratio of at least 25% and a year-on-year increase in cash dividends of at least 10%. A KB Asset Management official explained, "Although these tax benefits do not apply directly to the fund, the government's separate taxation policy on dividend income applies to individual investee companies, which is expected to lead to a re-evaluation and price increase of relevant stocks."

Second, the fund selectively invests in companies that strengthen shareholder returns through reduced dividends funded from capital reserves. This type of reduced dividend uses capital reserves rather than retained earnings as the source for dividends, and dividend income tax is not imposed on investors. This is expected to enhance investors’ actual after-tax returns.

Third, the fund seeks additional returns by investing in companies within globally competitive and high-growth industries such as AI semiconductors, power equipment, nuclear power, and biotechnology.

KB Asset Management has established a step-by-step process, from universe screening covering all KOSPI and KOSDAQ stocks, to model portfolio (MP) construction, and active portfolio (AP) management. The selection of beneficiary companies is based on both quantitative and qualitative analysis. In addition, the company plans to respond proactively to market changes by conducting approximately 200 corporate visits annually and through collaboration between research and portfolio management teams.

Beom Gwangjin, Head of Retirement WM Division at KB Asset Management, stated, "With policy changes such as the separate taxation of dividend income and the expansion of treasury share cancellation, the attractiveness of high-dividend investment is increasing. The 'KB New High Dividend Fund,' which pursues both dividend stability and growth potential, will be an effective alternative for investors seeking stable returns."

The KB New High Dividend Fund is available for subscription through major distributors including KB Kookmin Bank, Woori Investment & Securities, Daishin Securities, and others, with plans to expand the list of distributors in the future.

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