KEB Commerz Investment Trust Management Co., with over KRW4 trillion (USD3.7 billion) in assets, is considering launching a mixed domestic equity/fixed income fund, which may use interest rate swaps. "Some customers want to avoid too much equity risk and want some diversification," said Jae Hyun Lee, head of equities in Seoul.
The new fund, likely to contain a 30% exposure to fixed income, may enter interest rate swaps on the back of bond holdings. Lee continued the fund will likely launch this summer, after KEB Commerz Investment Management finalizes its recently-announced merger with Morgan Stanley's Landmark Investment Trust Management Co.
