Hanhwa Investment Management "Profit-Differentiated Korea Investment Global New Growth Fund, Stable Performance"

Korea Investment Trust Management announced on the 18th that the profit and loss differential private fund of funds it established last year, 'Korea Investment Global New Growth Fund,' is recording stable returns.

The Korea Investment Global New Growth Fund is a closed-end fund set up by Korea Investment Trust Management in August last year. It raised 91.9 billion KRW during a recruitment period of about one month. The fund's characteristic is diversified investment in seven new growth themes that are expected to lead the global economy in the future. The seven new growth themes are ▲Artificial Intelligence (AI) ▲Semiconductors ▲Electric Vehicles ▲Bio ▲Luxury Goods ▲Space Economy ▲Cloud, and the Korea Investment Global New Growth Fund incorporates seven private funds investing in each of these themes.

According to FnGuide, as of the 17th, the Korea Investment Global New Growth Fund (based on A-e class) has recorded a return of 6.63% since inception. This outperforms the average return of 2.31% for the major stock markets of countries where the fund invests, including Korea, the United States, France, and Japan, during the same period. Notably, during the same period, the KOSPI and KOSDAQ indices showed weak performance, recording -5.61% and -7.26%, respectively.

Riding on successful investor recruitment and stable operational performance, Korea Investment Trust Management has started recruiting for another profit and loss differential private fund of funds, 'Korea Investment Global AI Big Tech Fund,' from the 15th through Korea Investment & Securities. The profit and loss differential product features subordinate investors bearing a certain level of risk first. Senior investors can reduce their risk on investment returns.

Investors in the Korea Investment Global AI Big Tech Fund are the same as those in the previously launched Korea Investment Global New Growth Fund. Korea Investment Financial Group or its affiliates act as subordinate investors, while individual investors participate as senior investors. When the fund generates profits, up to 10% is preferentially allocated to senior investors, and in case of losses, subordinate investors bear losses first up to -15%.

The difference from the existing fund is the addition of a minimum holding period. If the redemption condition (15% return before maturity) is met within one year after inception, redemption occurs 15 business days after the minimum holding period has passed. If the redemption condition is met after one year, redemption occurs 15 business days from that date.

The Korea Investment Global AI Big Tech Fund focuses on concentrated investment in seven AI themes expected to have growth potential. The seven themes are ▲Cloud and AI Services ▲IT Systems ▲Semiconductor Solutions ▲Smart Healthcare ▲Automation and Mobility ▲Big Tech Platforms ▲Future Finance. Each private fund invests in leading companies within these themes. The Korea Investment Global AI Big Tech Fund plans to diversify investments evenly at about 14.3% (based on initial setup) across each sub-private fund. The fund is managed by Yongtae Seo, head of the Global Strategy Management Department and manager of the Korea Investment Global New Growth Fund, and investor recruitment is exclusively handled by Korea Investment & Securities until the 30th of this month.

Byungmoon Yoon, Chief Marketing Officer (CMO) of Korea Investment Trust Management, said, "The Korea Investment Global AI Big Tech Fund is a three-year maturity closed-end fund investing in big tech companies expected to benefit from AI growth, but early redemption is possible if the cumulative return reaches 15% before maturity." He added, "Following the Korea Investment SoBuJang Korea Fund, which was liquidated after maturity since its launch in 2020, and the Korea Investment Global New Growth Fund, which has shown stable performance since inception, this product reflects Korea Investment Trust Management's fund management capabilities and its business philosophy of 'prioritizing customer interests.'"

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