Kiwoom Asset Management "H2O Fund with Redemption Suspension to Pay Up to 94% Next Month"

[Asia Economy Reporter Oh Ju-yeon] Kiwoom Asset Management announced on the 23rd that the 'Kiwoom Global Alternative Fund,' an overseas fund of funds that suspended redemptions earlier this month, will resume redemptions next month. The expected redemption scale is about 91.2~94.0% of the fund's net assets and will be prioritized for payment to investors in October.

This fund is a "fund of funds" that includes H2O Asset Management's 'Multi Bond' and 'Allegro' funds. As of the 22nd, the fund's net assets stand at 358.7 billion KRW (principal 296.4 billion KRW), with a cumulative return of 21.8% since inception. Among these, the allocation to H2O funds is approximately 27.7%. At the end of last month, H2O funds were subject to suspension of new subscriptions and redemptions by European financial authorities due to a high proportion of illiquid private bonds.

Kiwoom Asset Management stated, "H2O Asset Management announced that the local fund redemption resumption date is October 13." They added, "To make key decisions regarding the deferred redemption fund, a general meeting of beneficiaries will be held on October 20, and through the resolution of this meeting, measures will be taken to redeem normal operating assets as quickly as possible, excluding assets with liquidity issues."

They continued, "The amount available for redemption through the general meeting of beneficiaries of the alternative fund is expected to be about 91.2~94.0% of the total net assets. Excluding side-pocketed assets, when calculating the amount to be paid through the resumption of redemptions in October, investors who invested at the fund's base price of 1,000 KRW are expected to be able to redeem not only their principal but also with a return of approximately 11.1~14.5%."

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