Korea Investment & Securities Launches Public Profit-and-Loss Differentiated 'Global Next Wave Fund' Recruitment

Korea Investment & Securities announced that it will exclusively offer the profit-and-loss differentiated public fund, the 'Korea Investment Global Next Wave Fund,' starting May 30.

The Korea Investment Global Next Wave Fund invests in listed stocks that are expected to benefit from major global government policies and the diversification of global investment regions. This public indirect private fund invests in seven private funds, each managed under separate themes: core technology companies in China, companies benefiting from China's economic stimulus, Europe-led defense industry, US-centered manufacturing, key Korean export companies, global value dividends, and globally overlooked leading companies. Korea Investment Management will be responsible for managing the fund.

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This fund is structured so that customers are senior investors, while Korea Investment Holdings and its affiliates are subordinated investors. In the event of a loss, subordinated investors absorb losses first, up to -15%. Conversely, if there is a profit, up to 10% of the profit from each private fund is distributed between senior and subordinated investors at a ratio of 85:15. For profits exceeding 10%, the distribution ratio changes to 55:45 between senior and subordinated investors. The fund has a three-year maturity, but if the return reaches 15% before maturity, early redemption is triggered. If redemption conditions are met within one year of establishment, redemption occurs 15 business days after the minimum holding period of one year. If redemption conditions are met after one year, redemption takes place 15 business days after the condition is met.

Yang Wontack, Head of Investment Product Division, said, "Amid growing influence of government policies on global stock markets and heightened uncertainty, this product has been designed to enhance customer investment stability through a profit-and-loss differentiated structure," adding, "It is a popular product that can be joined with a small amount, and we plan to continue supplying a variety of products to help improve customer investment returns in the future."

Subscriptions are open until June 16, with the fund establishment date set for June 17. The online class is also available for subscription. Further details can be found at Korea Investment & Securities branches and on the company website.

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