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 described as South Korea's first public offering fund-of-hedge-funds to exclude long-only and long-biased strategies, building its portfolio solely from true long-short private equity funds.
- • The fund diversifies across flagship long-short funds from five South Korean managers: Insight, Midas Asset, The J, SsiAt, and Forest Asset Management.
- • Retail investors can participate with small amounts and no minimum subscription requirement, with no redemption fees; the fund carries the highest risk rating (Grade 1).
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)," with sales running for three months beginning on the 16th. According to the firm, the product is South Korea's first public offering fund to exclude long-only and long-biased strategies entirely, constructing its portfolio solely from private equity funds that employ true long-short strategies.
The fund's underlying allocations are flagship long-short private equity funds run by 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 a manager's stock selection and risk management capabilities. Manager selection combined historical performance with qualitative assessments, including due diligence and verification of risk management frameworks.
Hong Dong-hoon, head of Yuanta Securities' Product Strategy Division, said that long-short strategies "pursue absolute returns through two-way positions while managing volatility," and 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 as the first true long-short fund-of-hedge-funds public offering in the South Korean fund market.
The structure gives retail investors 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. Subscriptions are available through Yuanta branches nationwide, its website, and the mobile trading system "T-Radar M." Details on investment targets, fee schedules, and purchase and redemption pricing are in the prospectus.
The fund's underlying allocations are flagship long-short private equity funds run by 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 a manager's stock selection and risk management capabilities. Manager selection combined historical performance with qualitative assessments, including due diligence and verification of risk management frameworks.
Hong Dong-hoon, head of Yuanta Securities' Product Strategy Division, said that long-short strategies "pursue absolute returns through two-way positions while managing volatility," and 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 as the first true long-short fund-of-hedge-funds public offering in the South Korean fund market.
The structure gives retail investors 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. Subscriptions are available through Yuanta branches nationwide, its website, and the mobile trading system "T-Radar M." Details on investment targets, fee schedules, and purchase and redemption pricing are in the prospectus.
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