Korea Investment Management, the fund operating unit of Korea Investment Holdings, said Friday that its fixed income fund dedicated to environmental, social and governance-related investments has surpassed 1.5 trillion won ($1.34 billion) by the size of assets it manages.

The size of the product, dubbed KIM Credit Focus Feeder ESG Bond 1, has rapidly increased, backed by investors’ appetite for stable profits amid possible changes in interest rates, the company said. The amount of assets came to 636.5 billion won as of end-December last year.

In February, the fund operator renewed the bond fund, which was launched in November 2008, adding in ESG fixed income investment strategies. To boost earnings, the firm utilized in-house ESG assessment models to invest in bonds issued by companies with high ESG standards. US financial services firm Morningstar also categorized the product as a sustainable fund.

Korea Investment manages 23 local fixed income funds, including five exchange traded funds. While the accumulated amount of assets raised from the funds marked nearly 2.97 trillion won as of Thursday, KIM Credit Focus Feeder ESG Bond 1 has attracted the bulk of investors’ funding so far, the company said.

By Jie Ye-eun (yeeun@heraldcorp.com)