Korea Investment Value Management Launches Profit-Differentiated 'Korea Value AI Innovation SoBuJang Fund'

Korea Investment Value Asset Management, a subsidiary of Korea Financial Group, announced on the 14th that it will launch the profit and loss differential public offering fund ‘Korea Value AI Innovation SoBuJang Fund,’ which can defend losses up to -15%.

The Korea Investment AI Innovation SoBuJang Fund selects promising themes that will lead future industries such as AI semiconductors, front-end semiconductors, generative AI, aerospace and robotics machinery, new devices, new mobility, and next-generation networks, and invests intensively in related domestic companies. It is a public offering private equity fund (private equity fund of funds) that invests equally in seven private equity funds managed under each theme.

The customers’ public offering fund invests as a senior investor in the seven underlying private equity funds, and Korea Investment Value Asset Management invests as a junior investor in a profit and loss differential structure. Even if losses occur in the underlying funds, the management company first absorbs losses up to -15%. Conversely, if profits occur, they are allocated to customers first, and profits exceeding 10% are shared between customers and the management company at a 6:4 ratio.

Senior Manager Kook Dae-woon, the fund’s lead portfolio manager, explained, "AI innovation is progressing across various industrial sectors rather than in specific fields, so it is efficient to diversify investments in major companies by sector." He added, "The Korea Investment AI Innovation SoBuJang Fund is a product that strengthens investment stability with a profit and loss differential structure while investing in the growth potential of promising industries."

The fund’s operation period is three years. Early redemption occurs when the yield reaches 16% (after the minimum operation period if less than one year since inception). The fund subscription period is until the 27th. It is exclusively sold through Korea Investment & Securities. Various events are held depending on the subscription amount. Detailed information can be found at Korea Investment & Securities branches and on their website.

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