The Fund is suitable for
• Investors who expect consistent long-term capital appreciation under different macro environment and can accept unit price volatility.
• Investors who understand and are able to tolerate leverage risk. Since derivative investment will allow the Fund to gain larger exposure (leverage) to asset values than the amount the Fund invests. As a result, losses on derivative instruments can exceed the amount invested in them which may significantly reduce the value of the Fund as a whole.
• Investors who are able to accept exchange rate risk and understand that movements in currency exchange rates can adversely affect the return of your investment.
• Recommended holding period : not less than 5 years.
Investment Policy
• The Fund mainly invests in at least 2 foreign funds.
• The Fund may invest in a particular Foreign Fund not more than average 79% of NAV in any accounting period.
• Underlying foreign funds will implement an asset allocation strategy in equities, bonds, convertible bonds, currencies, cash or cash equivalents, commodities etc., including financial derivative instruments in order to increase or reduce their exposures to specific asset classes. Portfolio will be adjusted based on multi-asset risk-based strategy.
• Using financial derivative instruments as part of the investment strategy, foreign funds are expected to be leveraged.
• The Fund may invest in derivatives for Efficient Portfolio Management purpose (EPM).
• The Fund may use derivatives to hedge against exchange rate risk at Fund Manager's discretion.
The foreign funds which K-ALLBASIC invests in more than 20% of NAV, details as follows:
Bloomberg Ticker: LOASUNA:LX
The Fund implements an asset allocation strategy in bonds, other fixed or floating-rate debt securities and short-term debt instruments issued or guaranteed by sovereign or non-sovereign issuers, convertible bonds, equities, currencies and/or Cash and Cash Equivalents, denominated in OECD currencies and/or Emerging Market currencies, including CNH and CNY. The instruments described above may be of any credit quality (including below investment-grade securities). The Investment Manager uses its discretion with regard to the selection of issuers, markets (in particular, the Fund may be fully invested in Emerging Markets) and currencies (including Emerging Market currencies).
The Investment Manager is authorized to use financial derivative instruments (in particular, but not limited to futures, credit (including CDS), interest rate, inflation, currency and volatility derivatives) for hedging purposes, EPM, and as part of the investment strategy.
Bloomberg Ticker: LOASUIA:LX
The Fund implements an asset allocation strategy in bonds, other fixed or floating-rate debt securities and short-term debt instruments issued or guaranteed by sovereign or non-sovereign issuers, convertible bonds, equities, currencies and/or Cash and Cash Equivalents, denominated in OECD currencies and/or Emerging Market currencies, including CNH and CNY. The instruments described above may be of any credit quality (including below investment-grade securities). The Investment Manager uses its discretion with regard to the selection of issuers, markets (in particular, the Fund may be fully invested in Emerging Markets) and currencies (including Emerging Market currencies).
The Investment Manager is authorized to use financial derivative instruments (in particular, but not limited to futures, credit (including CDS), interest rate, inflation, currency and volatility derivatives) for hedging purposes, EPM, and as part of the investment strategy.