Korea Investment Value Management Launches Profit-Differentiated 'Korea Value Corporate Value Focus Fund'

Korea Investment Value Asset Management, an affiliate of Korea Financial Group, announced on the 18th that it will launch the profit and loss differential public offering fund "Korea Value Corporate Value Focus Fund," which can defend losses up to -15%.

The Korea Value Corporate Value Focus Fund concentrates investments on four themes of corporate value revaluation: ▲Deep Value Focus (ultra-undervalued stocks) ▲Shareholder Returns ▲Sustainable Management ▲Dividend Growth, and three themes of innovative growth: ▲Energy Innovation ▲AI Innovation ▲Innovative Small Giants. It is a public offering-type private equity fund (private equity fund of funds) that diversifies approximately 14% investment into seven private equity funds managed under each theme.

The customers’ public offering fund invests as a senior tranche in the seven underlying private equity funds, while Korea Investment Value Asset Management invests as a junior tranche 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 are generated, they are allocated to customers first, and profits exceeding 10% are shared between customers and the management company at a 6:4 ratio.

The fund’s operation period is three years. Early redemption occurs when the yield reaches 13.4%. If the redemption condition is met within one year after establishment, redemption takes place 15 business days after the minimum holding period (one year) has passed; if the condition is met after one year, redemption occurs 15 business days from that date.

A representative from Korea Investment Value Asset Management said, "As the value-up program is fully underway, it can drive the stock price increase of companies undergoing value revaluation," and introduced the product as "a fund that focuses on corporate value analysis to discover investment targets and allows investment in a profit and loss differential fund with loss defense capability in the form of a public offering fund without subscription amount restrictions."

The fund subscription period is until the 26th. It is exclusively sold through Korea Investment & Securities. Various events will be 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.