KB Asset Management proposed an investment strategy ahead of the September U.S. Federal Open Market Committee (FOMC) meeting to address expanding volatility in interest rates and stock markets.
KB Asset Management recently analyzed that global financial markets are becoming increasingly uncertain due to factors such as U.S. employment and inflation data, monetary policy directions, international oil prices, and geopolitical variables.
Accordingly, the firm determined that a strategy dividing roles by asset class according to investment objectives—rather than predicting short-term market trends—is necessary. Focusing on three core strategies: volatility management, income generation, and growth participation, KB Asset Management selected seven strategic funds suitable for investors based on their goals and risk preferences.
For investors requiring volatility management, the firm recommended 'KB Tomorrow Dream Ultra-Short-Term Bond', 'KB U.S. S&P 500 Index 40', and 'KB U.S. NASDAQ100 Index 40'.
KB Tomorrow Dream Ultra-Short-Term Bond is managed primarily with short-maturity domestic bonds and short-term financial products to reduce sensitivity to interest rate fluctuations and allows redemption the next day (T+1).
KB U.S. S&P 500 Index 40 and KB U.S. NASDAQ100 Index 40 are bond-hybrid funds that allocate 40% to major U.S. indices and 60% to domestic short-term bonds, offering exposure to growth opportunities in the U.S. stock market while reducing volatility compared to 100% equity investments.
For income generation through dividend strategies, KB Asset Management highlighted 'KB RISE U.S. High Dividend ETF Moaedream' and 'KB New High Dividend'. These funds aim to secure income via dividends and invest in quality stocks to defend against downside risks while pursuing stable returns even during volatile market phases.
KB RISE U.S. High Dividend ETF Moaedream diversifies investments across U.S. high-dividend ETFs (exchange-traded funds) to pursue both dividend income and medium-to-long-term capital gains.
KB New High Dividend focuses on high-dividend stocks while also including companies with reduced dividends and growth-value stocks to promote dividend income and opportunities for stock price appreciation.
Finally, for investors seeking long-term growth opportunities, the firm recommended asset allocation strategy products: 'KB All-Asset AI Solution EMP' and 'KB Dynamic Qualified TDF (Target Date Fund) 2040'.
KB All-Asset AI Solution EMP utilizes KB's AI deep learning algorithm 'Anderson' to adjust asset allocations across stocks, bonds, commodity ETFs, and other assets to respond to market changes.
KB Dynamic Qualified TDF 2040 is a product that adjusts the proportion of risky assets according to a lifecycle glide path, making it suitable for investors aiming for long-term asset accumulation.
Jang Soon-mo, head of Product Strategy at KB Asset Management, said, "In times when it is difficult to definitively predict the direction of interest rates and stock markets, it is more important to clearly define each asset's role within a portfolio than to guess which assets will rise."
He added, "Short-term idle funds should utilize ultra-short-term bonds, medium-to-long-term growth participation should use bond-hybrid strategies, stable growth pursuits should focus on high-dividend options, and long-term investments should leverage AI EMPs and TDFs—matching strategies to investment objectives."
Jang said that the more volatility expands, the more important it becomes to utilize diverse solutions tailored to investors' risk preferences and investment horizons rather than betting on short-term market directions.
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