Korea Investment & Securities Achieves Target Return and Early Redemption of Profit-Differentiated Public Offering Fund

Korea Investment & Securities announced on the 11th that its profit-differentiated public offering fund, 'Korea Investment Global New Growth Fund,' achieved its target return of 20% and was redeemed early.

This fund is the first profit-differentiated public offering fund launched by Korea Investment Financial Group in August last year. It invests in overseas stocks across seven new growth themes: ▲ AI (Artificial Intelligence) ▲ Semiconductors ▲ Electric Vehicles ▲ Bio ▲ Luxury Goods ▲ Space Economy ▲ Cloud. Korea Investment Management handles the operation, while Korea Investment & Securities is responsible for sales.

Despite the contraction in the public offering fund market, the product was established with a total size of 107.5 billion KRW, including 91.9 billion KRW from retail funds and subordinated investment contributions from Korea Investment Financial Group. The product structure, which separates beneficiary certificates into senior and subordinated classes and has subordinated investors absorb losses up to a certain limit first, known as the 'profit-differentiated' structure, received strong positive responses at the time of launch.

Although it is a 3-year maturity product, early redemption was decided on November 14th after achieving the targeted 20% return. The stock prices of global AI, semiconductor, and cloud-related companies included in the underlying private funds rose sharply, driving the overall return. The fund underwent a three-week liquidation process and paid the full redemption amount to each investor on the 4th of this month.

Yang Won-taek, Head of Investment Products Division, said, "We are focusing the group's capabilities on developing and supplying high-quality financial products to invest stably in various global assets and generate returns." He added, "We plan to actively launch various structured public offering funds that pursue stable returns while reducing investment risks in the future."

Meanwhile, Korea Investment & Securities' individual customer financial product balance has increased by 1.3 trillion KRW every month this year, reaching an industry-leading 67.5 trillion KRW as of the end of November. Timely supply of fixed-rate products such as bonds and commercial papers, along with proactive offerings of global high-yield funds and monthly payout funds reflecting investor needs amid falling interest rates, proved effective.