Korea Investment & Securities said on the 15th that 111.3 billion won in funds flowed into the profit-and-loss waterfall public fund "Korea Investment Hanmi Next Innovation Growth Fund," which it began selling exclusively on the 1st. Including subordinated investment commitments from Korea Investment Financial Group, the total assets under management amount to about 127.5 billion won.
The Korea Investment Hanmi Next Innovation Growth Fund invests in corporations leading global innovation growth in Korea and the United States, including artificial intelligence (AI) technology stocks.
Designed as a profit-and-loss waterfall structure with general customers in the senior tranche and affiliates including Korea Investment Holdings in the subordinated tranche, if a loss occurs, the subordinated investors absorb losses first up to minus (-) 15%. Conversely, if there is a gain, up to 10% the senior and subordinated investors share 85 to 15, and for excess gains, the senior and subordinated investors split 55 to 45.
Korea Investment & Securities has previously offered a variety of profit-and-loss waterfall public funds. The firm noted that it received a strong response from investors on the grounds that the structure can prevent losses up to a certain level even if asset prices fall due to internal and external variables.
The "Korea Investment U.S. Economy Leading Industries Fund," launched in Jan., achieved a 15% return and is set for early redemption in Feb. next year, and the "Korea Investment Global Next Wave Fund," which began management in Jun., achieved a 15% return before half a year from launch and is slated for early redemption in Jul. next year.
Yang Won-taek, head of investment products at Korea Investment & Securities, said, "We will continue to closely examine customer needs, offer products that meet them, and work to improve investment returns."