Korea Investment Management Launches Diversified Global Corporate Bond Fund in Collaboration with Man Group

[Financial News] Korea Investment Management is introducing a credit fund that diversifies investments across global high-yield bonds, emerging-market and Asian corporate bonds, and other assets.
Korea Investment Management announced on the 3rd that it will launch the 'Korea Investment MAN Global Multi-Credit Fund (Bond-Fund-of-Funds).' Presubscriptions will be accepted through Korea Investment & Securities from the 4th to the 10th, with the initial fund launch scheduled for the 11th. The open-ended public offering fund will also accept subscriptions after its launch.
The product diversifies investments across global corporate bonds to pursue higher interest income than government bonds in a global mid-interest-rate environment while reducing volatility compared with equities. It consists of five subfunds based on investment approaches, including currency-hedged and unhedged types, U.S. dollar (USD)-denominated funds, and monthly-distribution funds.
The fund invests indirectly in three global credit funds managed by the British asset manager Man Group. These products invest in global high-yield bonds, emerging-market bonds and corporate bonds, as well as undervalued corporate bonds in Asia.
Korea Investment Management will not fix the allocation to any particular fund. Instead, it will flexibly adjust the proportions of the three funds based on market conditions and investment appeal. Through this approach, the company plans to diversify investments across different markets, including global high-yield and emerging-market and Asian credit, while taking advantage of bond investment opportunities in more than 80 countries worldwide.
When managing each fund, Man Group analyzes individual companies' business competitiveness, financial structures, debt-servicing capabilities, and credit risks before selecting investments.
Yoon Moon-hee, executive director of the Overseas Fixed Income Investment Division at Korea Investment Management, said, "Global interest in corporate bond funds offering attractive interest rates compared with government bonds has remained strong recently. The fund was designed to give individual investors easy access, through a combination of multiple funds, to diversified corporate bond portfolios that would be difficult for them to build on their own."


[email protected] Bae Han-geul Reporter