Kadian Asset Management Launches First Target-Return Fund "Kadian K-TOP Target Return 15"

Redemption Structure Activated Upon Reaching 15% Target Return
Focus on National Strategic Industries Including Semiconductors, AI, and Defense

Kadian Asset Management announced on March 18 that it will launch its first target-return fund, the "Kadian K-TOP Target Return 15 Private Equity Investment Trust No. 1," after changing its name last year from "Eastspring Asset Management Korea."

The "Kadian K-TOP Target Return 15" fund mainly invests in domestic listed equities. It is structured to redeem the fund once the target return of 15% (based on a base price of 1,150 won, calculated using the adjusted closing price) is achieved after fund inception. Kadian Asset Management has applied a target-return structure to this product to clearly present profit realization opportunities, while also incorporating a risk management system capable of responding to market volatility during operation.

Kadian Asset Management analyzed that there is a strong possibility of further growth in the Korean stock market, given the improvement in domestic corporate earnings and ongoing structural realignment centered on advanced industries. The decision to launch this fund particularly reflects the strategic value and technological competitiveness of Korea’s manufacturing sector, which has been highlighted amid global supply chain restructuring.

The "Kadian K-TOP Target Return 15" fund will pursue core strategies to achieve its target return and manage risk. First, by utilizing the target-return structure, the fund seeks to realize profits and manage risk simultaneously. If the fund return reaches the 15% target, redemption is triggered. To support this structure, when returns approach the 10% level, the fund will reduce exposure to highly volatile small and mid-cap stocks, and shift the portfolio toward large-cap stocks with stable dividends and cash flows, proactively managing the risk of declining returns.

The portfolio will be streamlined to about 20 stocks, balancing “core leading stocks” and “emerging champions.” Portfolio stability will be secured through leading stocks with strong market share and competitiveness, while additional profit opportunities will be sought by identifying emerging companies with technological competitiveness and growth potential. To prevent overconcentration in any one industry, regular rebalancing will be conducted to ensure the allocation to a single sector does not exceed 50%.

Accordingly, Kadian Asset Management plans to identify investment opportunities centered on national strategic industries such as semiconductors, artificial intelligence (AI), defense, and energy. The firm aims to enhance investment efficiency by selecting stocks expected to see increased corporate value, based on thorough on-site research and industry analysis.

Sangjun Kim, CEO of Kadian Asset Management, stated, “We designed this target-return product so that investors can experience tangible results, in line with the structural improvement and industrial advancement of the Korean stock market,” adding, “As this is Kadian Asset Management’s first target-return product, we will focus our management capabilities to ensure investors can reliably achieve their target returns.”

Meanwhile, the "Kadian K-TOP Target Return 15" fund is being offered through Korea Investment & Securities and will be launched and begin operation today.

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