Key Takeaways
- • Yuanta Securities will exclusively sell the "iM Asset Hero Long-Short Focus Securities Investment Trust (Private Equity Fund-of-Funds Type)" for three months starting on the 16th, per an announcement made on the 15th.
- • The fund is positioned as South Korea's first public offering fund-of-hedge-funds to exclude long-only and long-biased strategies entirely, investing solely in private equity funds running true long-short strategies.
- • The fund diversifies across flagship long-short private equity funds run by five South Korean managers: Insight, Midas Asset, The J, SsiAt, and Forest Asset Management.
- • Retail investors can subscribe with small amounts and no minimum subscription requirement, with no redemption fees; the fund carries the highest risk rating (Grade 1).
- • Yuanta's Hong Dong-hoon, head of the Product Strategy Division, framed the product as an alternative amid recent market volatility.
Summary
Yuanta Securities announced on the 15th that it will be the exclusive distributor of the "iM Asset Hero Long-Short Focus Securities Investment Trust (Private Equity Fund-of-Funds Type)" for three months beginning on the 16th. According to the announcement, the product is South Korea's first public offering fund to exclude long-only and long-biased strategies entirely, building its portfolio exclusively from private equity funds that employ true long-short strategies. Those strategies seek returns regardless of market direction by buying stocks expected to rise and shorting stocks expected to fall, and the fund targets return dispersion between individual stocks rather than overall market appreciation.
The portfolio draws on flagship long-short funds from five managers: Insight Asset Management, Midas Asset Management, The J Asset Management, SsiAt Asset Management, and Forest Asset Management. Yuanta noted that performance within the same long-short strategy can diverge significantly depending on stock selection and risk management capability. Manager selection combined historical performance with qualitative assessments, including due diligence and verification of risk management frameworks.
The fund-of-funds structure allows retail investors to gain diversified exposure to multiple private equity funds with small amounts and no minimum subscription, while retaining the operational transparency and redemption liquidity of a public offering fund. No redemption fees apply. The fund carries the highest risk rating (Grade 1) and is suitable for return-priority clients.
Hong Dong-hoon, head of Yuanta Securities' Product Strategy Division, said, "Long-short strategies pursue absolute returns through two-way positions while managing volatility," adding that the product offers an alternative for investors seeking new options amid recent increases in market volatility. He described the fund as selectively incorporating "only the best private equity houses employing fundamental long-short strategies," and characterized it as the first true long-short fund-of-hedge-funds public offering in the South Korean fund market.
Subscriptions are available through Yuanta Securities branches nationwide, its website, and the mobile trading system "T-Radar M." Details on primary investment targets, fee schedules, and purchase and redemption pricing are set out in the prospectus.
The portfolio draws on flagship long-short funds from five managers: Insight Asset Management, Midas Asset Management, The J Asset Management, SsiAt Asset Management, and Forest Asset Management. Yuanta noted that performance within the same long-short strategy can diverge significantly depending on stock selection and risk management capability. Manager selection combined historical performance with qualitative assessments, including due diligence and verification of risk management frameworks.
The fund-of-funds structure allows retail investors to gain diversified exposure to multiple private equity funds with small amounts and no minimum subscription, while retaining the operational transparency and redemption liquidity of a public offering fund. No redemption fees apply. The fund carries the highest risk rating (Grade 1) and is suitable for return-priority clients.
Hong Dong-hoon, head of Yuanta Securities' Product Strategy Division, said, "Long-short strategies pursue absolute returns through two-way positions while managing volatility," adding that the product offers an alternative for investors seeking new options amid recent increases in market volatility. He described the fund as selectively incorporating "only the best private equity houses employing fundamental long-short strategies," and characterized it as the first true long-short fund-of-hedge-funds public offering in the South Korean fund market.
Subscriptions are available through Yuanta Securities branches nationwide, its website, and the mobile trading system "T-Radar M." Details on primary investment targets, fee schedules, and purchase and redemption pricing are set out in the prospectus.
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