KB Asset Management, ahead of the September Federal Open Market Committee (FOMC) meeting, proposed dividing roles by asset according to investment objectives—such as volatility management, income capture, and long-term growth participation—as a strategy to respond to rising volatility in interest rates and stock markets.
KB Asset Management said on the 11th it selected seven strategy funds that investors can use according to their objectives and risk preferences, with three core strategies: volatility management, income capture, and growth participation.
First, for investors who need market volatility management, it suggested "KB Naeildream Ultra Short-Term Bond," "KB U.S. S&P 500 Index 40," and "KB U.S. Nasdaq 100 Index 40."
KB Naeildream Ultra Short-Term Bond is a product that lowers sensitivity to interest rate fluctuations by focusing on domestic bonds with short maturities and short-term financial instruments, and allows next-day (T+1 day) redemptions. KB U.S. S&P 500 Index 40 and KB U.S. Nasdaq 100 Index 40 are bond-mix products that hold 40% of a leading U.S. index and 60% of domestic short-term bonds, aiming to capture growth opportunities in the U.S. market while reducing volatility compared with a 100% equity investment.
For an income-capture dividend strategy, it picked "KB RISE U.S. High Dividend ETF MoaDream" and "KB New High Dividend." By securing income through dividends and investing in quality stocks, they aim to defend against downside risk and pursue stable returns even in volatile phases.
KB RISE U.S. High Dividend ETF MoaDream pursues both dividend revenue and mid- to long-term capital gains by diversifying across U.S. high-dividend ETFs. KB New High Dividend seeks dividend revenue and share price appreciation by focusing on high-dividend stocks while also including companies with dividend cuts and growth value stocks.
For investors seeking long-term growth opportunities, it suggested "KB All Asset AI Solution EMP" and "KB Dynamic Qualified TDF 2040," which are asset allocation strategy products.
KB All Asset AI Solution EMP responds to market changes by adjusting the asset weights of stock, bond, and commodity ETFs using KB's AI Deep Learning algorithm "Anderson." KB Dynamic Qualified TDF 2040 is a product that adjusts the share of risky assets according to a life-cycle glide path, and is suitable for investors aiming for long-term asset building, KB Asset Management said.
Recently, the global financial market has seen rising uncertainty as U.S. employment and inflation indicators, the direction of monetary policy, international oil prices, and geopolitical variables interact. Because it is difficult to pin down the direction of interest rates and the stock market, KB Asset Management's analysis is that there is a growing need to build portfolios aligned with investment objectives and risk preferences rather than making directional bets on a single asset.
Jang Sun-mo, head of product strategy at KB Asset Management, said, "The harder it is to determine the direction of interest rates and the stock market, the more important it is to clarify the role of each asset within a portfolio rather than trying to predict which asset will rise," adding, "For short-term idle funds, use ultra short-term bonds; for mid- to long-term growth participation, use bond-mix; for stable growth, use high dividend; and for long-term investing, use AI EMP and target date funds (TDF), aligning strategies with investment objectives."