Raem Asset Management "Redemption Halted 2 Master Funds Recovery Rate 50~77%"

[Asia Economy Reporter Oh Ju-yeon] The recoverable amount of two Lime Asset Management private funds with suspended redemptions is expected to range from a minimum of 50% to a maximum of 77%.

On the 10th, Lime Asset Management issued a press release stating that the expected recovery rate of the master fund 'Pluto FI D-1', received from Samil Accounting Corporation which conducted the fund's accounting audit, is between 50% and 65%, and for 'Tethys No. 2', it is between 58% and 77%. The valuation of these funds as of October 31 last year was 937.3 billion KRW for Pluto and 242.4 billion KRW for Tethys, respectively.

Lime explained regarding this audit report, "The expected recovery rate is not the final loss rate for customers but is used as a reference for evaluating the net asset value," adding, "We plan to calculate the net asset value reflecting the expected recovery rate."

Following the disappearance of former Vice President and former Chief Investment Officer (CIO) Lee Jong-pil, Lime announced that it has filled not only the previously vacant CIO position but also the compliance officer role with suitable personnel.

Lime stated, "The newly joined CIO and compliance officer are professionals with over 20 years of extensive asset management experience and internal control capabilities in Korea's top three large asset management firms and the financial industry," and added, "They will collaborate with existing staff to fairly resolve the redemption suspension situation and do their best to maximize the recovery rate."

On the 11th and 12th, fund distributors will sign a Memorandum of Understanding (MOU) with Lime and dispatch employees, and on the 13th, a Financial Supervisory Service supervisor will be dispatched to Lime. Additionally, by the 17th of this month, the net asset values of the two master funds will be adjusted, and based on this, the net asset values of related sub-funds will be adjusted by the 27th. On the 21st, Samil Accounting Corporation will announce the accounting audit results for the sub-funds to Lime.

Furthermore, Lime addressed incorrect reports claiming that securities firms with total return swap (TRS) contracts recover related loans first and that individuals receive nothing if the fund loss rate is high, stating, "TRS contracts, which are trading methods used for various purposes such as leveraging or foreign exchange hedging during fund management, are concluded not only for the master fund but also individually for each sub-fund, so leverage ratios and situations differ for each fund." They added, "Therefore, making definitive statements about the loss ratios of redemption-suspended funds related to TRS contracts can cause confusion and anxiety among investors."

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