On June 18, Korea Investment & Securities announced that the 'Korea Investment Global Next Wave Fund,' a public offering fund with a profit and loss sharing structure exclusively sold since May 30, has completed its fundraising with approximately 49.7 billion KRW. Including the subordinated investment contributed by Korea Investment Financial Group, the total fund size amounts to about 58 billion KRW.
The Korea Investment Global Next Wave Fund invests in undervalued companies within industries that are expected to lead the global economy and benefit from market rebounds, such as core technology stocks in China, companies benefiting from economic stimulus, European-led defense industries, U.S.-centered manufacturing, and key Korean export companies.
Korea Investment Trust Management is responsible for managing the fund. The fund adopts a profit and loss sharing structure, where general customers are given senior status, and affiliates including Korea Investment Holdings are assigned subordinated status. In the event of a loss, subordinated investors absorb losses first, up to -15%. If profits are realized, up to 10% of the gains are distributed between senior and subordinated investors at a ratio of 85 to 15. For profits exceeding this threshold, the distribution ratio shifts to 55 to 45 between senior and subordinated investors, respectively.
Korea Investment & Securities had previously launched profit and loss sharing funds investing in global equities, such as the 'Korea Investment US Economic Leaders Fund' and the 'Korea Investment Samsung Group Fund,' in succession.
Yang Won-taek, Head of Investment Products Division at Korea Investment & Securities, stated, "We will continue to launch products with structures that reduce concerns about losses and invest in diverse themes, aiming to enhance both the stability and returns of our clients' investments."
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