Lime Reveals 'Write-off' Plan After Fund Due Diligence...Some Distributors Oppose

[Asia Economy Reporter Park Jihwan] Lime Asset Management's plan to write off funds under audit by Samil Accounting Corporation as accounting losses has sparked opposition from some distributors.

According to the financial investment industry on the 16th, Lime Asset Management plans to adjust the asset-specific valuation prices and reflect them in the net asset value as soon as the fund audit is completed. This refers to the process of reflecting accounting losses through write-off treatment. When fund managers and distributors write off bonds, it leads to losses for fund subscribers.

Samil Accounting Corporation has been conducting audits on three master funds and 157 sub-funds of Lime Asset Management since November last year. The audit results are expected to be released next month. It is reported that the fund assets, totaling 1.5587 trillion won, are being classified into A, B, and C grades to distinguish the possibility of insolvency.

Lime Asset Management stated regarding this write-off plan, "We considered the seriousness of the current situation and the uncertainty of investment assets, which raised the need to adjust the net asset value." However, they emphasized that reflecting the net asset value does not mean the final loss, and since the net asset value may fluctuate depending on the actual recovery status of each asset after evaluation, they will make every effort to recover the assets.

However, some fund distributors have expressed opposition to immediately writing off after the audit results are announced. Accordingly, some distributors recently submitted a letter of opposition to Woori Bank, the secretary of a consultative body consisting of 16 distributors including banks and securities firms.

This content was produced with the assistance of AI translation services.