Korea Investment Management Launches 'Korea Investment MAN Global Multi Credit Fund'

In the context of the current global mid-interest-rate environment, a new fund-of-funds public offering has been launched that diversifies investments in overseas credit (corporate bond) assets, which are expected to deliver higher interest income compared to government bonds.

On September 3, Korea Investment Management announced the launch of the 'Korea Investment MAN Global Multi Credit Fund (Bond-Fund of Funds).' Pre-subscription will be available through Korea Investment & Securities from September 4 to September 10.

This fund is designed to diversify investments across a variety of global credit (corporate bond) assets. The initial setup date is scheduled for September 11, and it is an open-ended public fund, allowing investors to subscribe even after the initial setup date.

The product is structured as a master-feeder fund, offering a total of five sub-funds: ▲ currency-hedged ▲ unhedged ▲ U.S. dollar (USD) ▲ monthly distribution (both currency-hedged and U.S. dollar versions), among others. Domestic investors can select among these five sub-funds according to their preferred currency hedge, investment currency, and monthly payout options.

The fund invests indirectly in three global credit funds managed by MAN, a UK-based asset management company. The investment targets are: the 'MAN High Yield Opportunity Fund,' which invests in the global high yield bond market; the 'MAN Emerging Market Corporate Credit Opportunity Fund,' which invests in emerging market sovereign bonds and corporate bonds; and the 'MAN Asia Credit Opportunity Fund,' which seeks out undervalued corporate bonds in Asia.

Korea Investment Management does not fix the allocation ratio for any specific underlying fund, but instead flexibly adjusts the proportions of the three funds in accordance with market conditions and the investment attractiveness of each asset. Through this approach, the fund diversifies across high yield, emerging market credit, and Asian credit markets, each with distinct characteristics, leveraging bond investment opportunities spanning more than 80 countries worldwide. In managing each underlying fund, MAN employs a bottom-up fundamental analysis. The company will comprehensively review the business competitiveness, financial structure, debt repayment ability, and credit risk of individual companies, ultimately selecting those proven to be sound through this due diligence process.

Moonhee Yoon, Managing Director of Overseas Fixed Income Management at Korea Investment Management, stated, "There continues to be strong global interest in corporate bond funds, which currently offer more attractive yields than government bonds," adding, "This product is designed to provide individual investors with easy access to diversified corporate bond portfolios—something that is very difficult to build alone—by combining several funds managed by investment professionals."

The redemption proceeds of the Korea Investment MAN Global Multi Credit Fund will be paid eight business days after the redemption request date, provided the request is made before 5 p.m. The annual management fee for the fund is 0.30%.

This content was produced with the assistance of AI translation services.