Hyundai Investment Asset Management Launches Next High Kick No. 2 Fund

Hyundai Investment Asset Management announced on October 14 that it is launching the "Hyundai Investment Next High Kick Target Conversion Securities Investment Trust No. 2 (Mixed Equity)," a target conversion fund that focuses on investing in small- and mid-cap stocks as well as domestic beneficiaries of government policy changes.

The Next High Kick No. 1 Fund, launched on August 14, achieved its target return of 10% in just 36 days. The Next High Kick No. 2 Fund, as a follow-up product, is being offered with a target fund size of 30 billion won.

The Next High Kick No. 2 Fund invests in undervalued small- and mid-cap stocks aligned with megatrends, as well as domestic stocks expected to benefit from policy changes by the Korean and U.S. governments. The strategy focuses on stocks related to domestic demand that are expected to benefit from recent interest in semiconductors and the increase in Chinese tourists. It also includes an event-driven strategy to generate additional returns through corporate mergers, spin-offs, and share buybacks.

As a mixed equity fund, it flexibly adjusts its equity allocation between 50% and 90% depending on market conditions. The proportion of small- and mid-cap stocks is maintained at around 70%, with concentrated investments in approximately 30 to 40 stocks.

If the fund achieves its 10% target return during operation, it will dispose of equity-related assets and invest in bond ETFs to secure interest income and limit volatility, thereby operating as a bond fund of funds.

The "Hyundai Investment High Kick Small and Mid Cap Securities Investment Trust No. 1 (Equity)," managed by Baek Doojin, the head of the equity division for the Next High Kick No. 2 Fund, recorded a year-to-date return of approximately 70% as of October 10.

The Next High Kick No. 2 Fund can be subscribed to at KB Securities, Kyobo Securities, Samsung Securities, Hana Securities, Korea Investment & Securities, and Hyundai Motor Securities (listed in alphabetical order). The fund will be established on October 24.

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