Korea Investment & Securities, Early Redemption of Profit-Differentiated Public Offering Fund...Achieves Target Yield

Korea Investment & Securities announced on the 18th that the profit and loss differentiated public offering fund 'Korea Investment Global AI Big Tech Fund' achieved its target return of 15% and was early redeemed.

This fund is a profit and loss differentiated public offering fund launched in January last year through a partnership of Korea Investment Financial Group affiliates, which diversifies investments into seven private equity fund themes: ▲Cloud & Artificial Intelligence (AI) ▲IT Systems ▲Semiconductor Solutions ▲Smart Healthcare ▲Automation & Mobility ▲Big Tech Platforms ▲Future Finance. Korea Investment Trust Management handled the operation, and Korea Investment & Securities was solely responsible for sales.

Each private equity fund is structured as 'profit and loss differentiated,' with customers as senior investors and Korea Investment Financial Group affiliates as subordinated investors. Losses up to a certain point are first borne by subordinated investors, and when profits occur, distributions are prioritized to senior investors. This design led to success in attracting about 80 billion KRW of retail funds despite the sluggish domestic public fund market.

The fund, originally set with a three-year maturity, achieved the target return of 15% on the 4th and early redemption was decided. After about two weeks of liquidation procedures, the full redemption amount was paid to customers on the 17th. As the target return was approached earlier this year, the portfolio strategy involved selling risky assets and converting them into bond assets, successfully realizing stable returns even amid recent volatile market conditions.

Seo Yong-tae, Head of Global Strategy Management at Korea Investment Trust Management, explained, "Profit and loss differentiated funds require strong confidence in achieving target returns due to their structure. As a result of focusing investments on major companies with high growth potential, we were able to operate steadily despite various market events."

Yang Won-taek, Head of Investment Products Division at Korea Investment & Securities, said, "As uncertainties surrounding the global market increase recently, investors' concerns are deepening. Going forward, we plan to concentrate the group's capabilities on developing financial products that can generate stable returns based on thorough risk management."

Meanwhile, Korea Investment Financial Group continues to introduce profit and loss differentiated public offering funds that diversify investments across various global assets. At the end of last year, the group's first profit and loss differentiated public offering fund, 'Korea Investment Global New Growth Fund,' successfully achieved its target return of 20% and was early redeemed.

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