Raem Asset Management Reports "46% Loss on Pluto and 17% Loss on Thetis in Redemption-Halted Funds"... Total Losses in Some Sub-Funds

[Asia Economy Reporter Eunmo Koo] Lime Asset Management has reported loss rates of 46% and 17% respectively for two parent funds worth 1.2 trillion KRW whose redemptions have been suspended. In particular, the losses of 29 sub-funds that leveraged through total return swap (TRS) contracts with securities firms were significant. Among these, three funds are expected to incur total losses.

According to the financial investment industry on the 14th, Lime Asset Management announced that the loss rates for the two suspended redemption funds, 'Pluto FI D-1' and 'Tethys 2', are expected to be 46% and 17% respectively as of the 18th, compared to the previous day.

Lime Asset Management held a collective investment asset evaluation committee and confirmed the loss rates by maintaining the existing evaluation methods for assets valued at market price and fair value, while using the recovery rates provided by Samil Accounting Corporation as the main basis for assets valued at book price.

Lime Asset Management further stated, "For the beneficiary certificates subscribed by these funds, if the asset management companies of the funds, Raum Asset Management and Port Korea Asset Management, adjust the base price through the collective investment asset evaluation committee, the adjusted base price will be reflected to sequentially adjust the base prices of these funds."

Meanwhile, it was found that the losses of 29 sub-funds that leveraged through TRS contracts with securities firms were significant. Three funds, 'Lime AI Star 1.5Y No.1', 'Lime AI Star 1.5Y No.2', and 'Lime AI Star 1.5Y No.3', incurred total losses following the adjustment of the parent fund's base price.

Lime Asset Management explained, "The reason for the significant decline in the base prices of these funds is that the leverage ratio was 100% due to the use of TRS," adding, "The value of the assets included has fallen more than the margin, so currently there is a possibility that the customers' fund contributions will be completely lost."

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