Korea Investment Management will start selling the "Korea Investment Korea-U.S. Core Growth Focus Target-Conversion Securities Investment Trust No. 2 (Bond Mixed–Feeder)" from the 15th of this month.
It is a fund that seeks revenue by investing in Korea's and the United States' core growth industries and converts to a bond type when the target rate of return is achieved, and subscriptions will be available through Kookmin, Hana and NongHyup banks and Kyobo and Kiwoom Securities until the 28th of this month.
The product has a target-conversion structure that, from the initial launch date until the conversion of management, invests 50% or more in domestic bond-related exchange-traded funds (ETFs) while investing less than 50% in Korea-U.S. core growth stocks, seeking revenue.
Afterward, when the 7% target rate of return is reached, it sells stock-related asset held and converts to a "bond–feeder type" that invests in domestic short-term bonds and Monetary Stabilization securities, among others. The strategy is to lock in revenue until liquidation and continue with lower-risk management.
The fund's portfolio is built around seven core industries expected to drive future global economic growth. In addition, quantitative and qualitative analyses and simulations are conducted to pre-check risk exposure for each sector's stocks. Through this, the top representative stocks in each selected sector are included at 70%, and the remaining 30% consists of the next-best stocks in each sector.
Examples of industries include ▲ beneficiaries of regulatory improvement, ▲ export pillars, ▲ artificial intelligence (AI) infrastructure, ▲ AI innovation, ▲ digital finance leaders, ▲ big pharma and biotech, and ▲ power infrastructure.
In the domestic market, the focus is on corporations being revalued due to improved governance and stronger shareholder returns and on export-driven corporations, while in the U.S. market, the focus is on big tech corporations that lead the global market with unrivaled technological strength.
Kim Won-jae, head of global equity management at Korea Investment Management, said, "This fund seeks to capture both Korea's policy momentum and the United States' technology growth benefits in a highly volatile market environment," adding, "In particular, it strategically selected as a feature the core corporations expected to benefit from the Korean government's ongoing corporate value enhancement policies, export-driven blue-chip corporations, and the United States' technology hegemony and preference policies."
Kim added, "Because it converts to a bond type when the target rate of return is achieved, it is suitable for investors who hope to secure an appropriate level of revenue and then manage asset stably."