'Liability up to 15% Loss'... Korea Investment & Securities Completes Setting Up Profit and Loss Differential Fund

Korea Investment & Securities, a subsidiary of Korea Financial Group, announced on the 9th that the 'Korea Investment Global New Growth Fund,' which it has been exclusively selling since the 17th, has completed its setup by raising 91.9 billion KRW. Including the subordinated investment contribution from Korea Investment Financial Group, the total managed assets amount to 108 billion KRW.

The investment targets of the Korea Investment Global New Growth Fund are seven themes: ▲Artificial Intelligence (AI) ▲Semiconductors ▲Electric Vehicles ▲Bio ▲Luxury Goods ▲Space Economy ▲Cloud. The fund structure is a public offering-type private equity fund (private equity fund of funds), which diversifies investments across seven private equity funds each managed under these themes. The management period is three years, and early redemption will occur if the yield reaches 20% before maturity. Korea Investment Management is responsible for fund management.

Despite the recent slowdown in inflows to public offering funds, the fund received strong responses as a profit and loss differential fund prioritizing customer interests. A profit and loss differential fund is a product type that separates beneficiary certificates into senior and subordinated classes, where subordinated investors bear losses up to a certain limit first.

The Korea Investment Global New Growth Fund invests customers' public offering funds as senior investors in the seven private equity funds, while affiliates including Korea Investment Financial Group invest as subordinated investors, focusing on enhancing customer returns. Even if losses occur in the underlying funds, subordinated investors absorb losses first up to -15%. When profits arise, they are allocated to customers first, and profits exceeding 10% are split equally between senior and subordinated investors.

Kim Seong-hwan, Head of the Individual Customer Group, said, "Going forward, we plan to actively launch products that reduce loss concerns and pursue stable returns, such as global theme investments and profit and loss differential funds, focusing more on improving customer returns."

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