Korea Investment Management Launches "Korea Investment US-Korea Core Growth Focus Target Conversion Fund No. 2"

Korea Investment Management announced on April 14 that it will begin sales of the "Korea Investment US-Korea Core Growth Focus Target Conversion Securities Investment Trust No. 2 (Bond Mixed-Feeder Type)" starting April 15.

According to Korea Investment Management, this fund aims to generate returns by investing in key growth industries in both Korea and the United States. Once the target return rate is achieved, it will convert into a bond-type fund. Subscriptions will be available until April 28 at KB Kookmin Bank, Hana Bank, NongHyup Bank, Kyobo Securities, and Kiwoom Securities.

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The fund portfolio is structured around seven key themes expected to drive future global economic growth. It conducts quantitative and qualitative analyses of each sector and performs simulations to pre-assess risk exposure. The strategy is to allocate 70% to the top representative stocks in each selected sector to form the core portfolio, while managing the remaining 30% as a strategic portfolio comprised of secondary sector picks. Example themes include: beneficiaries of regulatory reforms, key export sectors, AI infrastructure, AI innovation, digital finance leaders, big pharma and biotech, and power infrastructure.

From the inception date until the conversion, the fund will invest more than 50% in domestic bond-related exchange-traded funds (ETFs), and less than 50% in core growth stocks in Korea and the United States. Once the target return of 7% is reached, the fund will sell its equity-related assets and convert into a "bond-feeder type," investing in domestic short-term bonds and monetary stabilization bonds.

Kim Wonjae, Head of Global Equity Investment at Korea Investment Management and chief portfolio manager for the fund, said, "The US-Korea Core Growth Focus Target Conversion No. 2 Fund pursues both the policy momentum of Korea and the technological growth potential of the United States in a highly volatile market environment." He added, "Since the fund converts to a bond type upon achieving the target return, it is suitable for investors who wish to secure reasonable returns and then manage their assets in a stable manner."

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