KB Asset Management said on the 11th that it will sharply shorten the redemption cycles of 78 offshore public funds to improve investment convenience and accessibility. As a result, investors will be able to receive redemption proceeds 1 to 4 business days earlier than before.
This measure will be carried out in two rounds. First, it applies to U.S. and global fund products starting today, and will expand to flagship pension products starting on the 21st of next month.
The funds subject to the first round of shortened redemption cycles are U.S. equity and derivative index funds. The redemption payment date is 4 business days, shortened by 1 to 4 business days from the previous schedule. The application date for the redemption base price is 3 business days.
For global active equity and EMP funds (ETF managed portfolio) and asset allocation funds, the redemption payment date will be 5 business days, moved up by 3 business days from 8 business days previously. U.S. bond funds will also be paid in 5 business days, shortened by 1 business day from before. The application date for the redemption base price is 4 business days.
The target funds are 44 funds, including 18 master funds such as "KB U.S. Representative Growth Stocks," "KB U.S. ESG Dividend Aristocrats," "KB Core Growth Asset Allocation," "KB Global AI Metaverse Tech," "KB Global Equity Solution EMP," "KB Global Technology EMP," "KB Target Return Stable OCIO," and "KB U.S. Long-Term Treasury Plus."
The second-round targets are 34 products, including the flagship pension products "KB Dynamic·On Gukmin TDF" and TIF funds. Starting on the 21st of next month, the redemption payment date is expected to be accelerated from 8 business days to 5 business days.
Jang Sun-mo, head of product strategy at KB Asset Management, said, "Based on our experience building the ultra-short-term bond fund market by developing the industry's first 'KB Money Market Active Fund,' which pays redemption proceeds the day after a redemption request, we have completed a product remodeling that sharply shortens fund redemption payment schedules."