Achieves target return in 54 days... KB Asset Management launches second advanced strategic industries fund

[Financial News] KB Asset Management has launched a follow-up product to its KB Korea Advanced Strategic Industries 50 Target Conversion Fund, which achieved its target return of 7% just 54 days after launch. The fund invests in Korea’s advanced strategic industries, including semiconductors, defense and biotech, and shifts its assets toward bonds once the target return is reached.
According to the financial investment industry on the 4th, KB Asset Management’s KB Korea Advanced Strategic Industries 50 Target Conversion Fund No. 2 is a bond-mixed fund that invests in both stocks related to Korea’s advanced industries and high-quality bonds. It aims to benefit from industrial growth while keeping the proportion invested in stocks below 50% and managing volatility through bonds.
The fund will invest in 12 advanced strategic industries that the government plans to support over the next five years through initiatives including the National Growth Fund. These include semiconductors, displays, secondary batteries, biotech, robotics, defense, vaccines, hydrogen, future mobility, artificial intelligence (AI), critical minerals and content. Its equity portfolio will focus on semiconductors, electrical and electronic equipment, defense, secondary batteries, biotech, and space and robotics. The fund plans to select 20 to 30 stocks based on growth prospects for each industry, the competitiveness of individual companies and their potential for value appreciation.
For its bond portfolio, the fund will invest in highly rated domestic bonds, including government and public bonds, Monetary Stabilization Bonds, special bonds and bank bonds.
It will also use short-term bond exchange-traded funds (ETFs) and money market funds (MMFs). The strategy is to keep the average duration short to reduce interest-rate risk and secure interest income.
The fund targets a cumulative operating return of 7% for its A class. When its benchmark price reaches 1,070 won, it will sell equity-related assets and shift its investments to domestic short-term bond ETFs, MMFs, bonds and other such assets.
After reaching its target return, the fund will be managed with a focus on bonds to preserve returns. Investors can subscribe through KB Kookmin Bank’s online and offline channels. The subscription period runs through the 13th, and the fund is scheduled to be established on the 16th.
Beom Gwang-jin, head of the Pension WM Division at KB Asset Management, said, “Advanced strategic industries such as semiconductors, defense and biotech are expected to grow over the medium to long term, supported by government policies and the industries’ own growth potential.” He added, “This fund is designed to invest in growth opportunities in these industries while enabling returns to be managed steadily by switching to bonds once the target return is reached.”

[email protected] Lee Jeong-hwa Reporter