Korea Investment Value Asset Management Launches Subordinated Profit-and-Loss 'Korea Value K-Power 2 Fund'

Korea Investment Value Asset Management, an affiliate of Korea Financial Group, announced on January 20 that it will launch the subordinated profit-and-loss public fund 'Korea Value K-Power 2 Fund'.

This fund is a fund of funds that invests in seven sub-private equity funds, each reflecting the latest trends in the Korean stock market: Korea Value Advanced Medical, Korea Value Future Tech, Korea Value Global Value Chain, Korea Value Power & Grid, Korea Value Consumer, Korea Value Clean Tech, and Korea Value Content Power.

This is a subordinated profit-and-loss fund in which customers invest as senior investors, while Korea Investment Value Asset Management invests as a junior investor. Accordingly, even if the fund incurs losses, the company will absorb losses first up to -15% for each sub-private equity fund. In the case of profits, up to 10% will be distributed between customers and the company at a ratio of 85 to 15, and for profits exceeding 10%, the distribution ratio will be 55 to 45.

The fund will be managed for up to three years, and if the customer's return reaches 15% before maturity, it will be redeemed early. The fund is distributed by Korea Investment & Securities, and the subscription period runs until January 28.

A representative from Korea Investment Value Asset Management stated, "Because the fund is structured to protect customers from losses first, it is suitable for investors seeking stable returns. We will build a portfolio focused on sectors and companies that are likely to emerge as new leaders in 2026, in addition to the current market trends, in order to pursue strong performance."