Korea Investment & Securities Co. said on Jan. 8 that it will be the sole distributor of the profit-and-loss waterfall public fund "Korea Investment Global AI Innovation Industry Fund."
The fund selects and concentrates on domestic and foreign stocks leading global innovation-driven growth. It is a public feeder fund that invests in seven underlying private funds—AI semiconductors, energy infrastructure, digital finance, consumer platforms, biotech, AI Robotics, and space and aviation—with Korea Investment Management managing the fund.
The fund is a profit-and-loss waterfall product that prioritizes customers as senior tranche holders and affiliates, including Korea Investment Holdings, as junior tranche holders. Even if a loss occurs in each underlying fund, the company first absorbs the loss up to minus (-)15%.
Conversely, if an underlying fund generates a gain, returns up to 10% are split between customers and the company at an 85:15 ratio, and returns exceeding 10% are split 55:45.
The management period is three years, but if the return reaches 15% before maturity, it is redeemed early. If the redemption condition is reached within one year after inception, early redemption occurs after the minimum holding period of one year has passed.
Yang Won-taek, head of the investment products division at Korea Investment & Securities Co., said, "With market expectations for growth stocks, including the AI industry, still intact, we expect to enhance customer investment safety through a profit-and-loss waterfall structure," and added, "We will continue to introduce a variety of products to improve customer investment returns."
The subscription period for this product runs until the 21st of this month. The online class is also available for enrollment.