Kyobo Global M Private Equity Fund, 99% ‘loss-making’ … Sold by Shinhan Bank

▲ (Photo = Energy Economy DB Newspaper)

[에너지경제신문=윤하늘 기자] Investors in the “Kyobo Securities Royal Class Global M Private Equity Fund” sold by Kyobo Securities through Shinhan Bank suffered a loss of almost the entire amount.

According to the financial investment industry on the 9th, Shinhan Bank sent a notice stating that “ the fund’s base price will be adjusted within 1% of the initial investment amount ” to clients who have invested in the “ “ Kyobo Securities Royal Class Global M Specialized Private Equity Investment Trust ”. done. In other words, the loss is up to 99%.

This product is an indirect fund that invests in the US offshore fund “ Tandem Credit Facility Fund ” managed by Tandem, a Hong Kong based wealth management company, which invests primarily in bonds based on loans to US local SMEs. About 10.5 billion won was sold through Shinhan Bank.

In the aftermath of the new coronavirus infection (Corona 19), a small business owner in the United States was hit with a direct hit, resulting in the insolvency of the underlying assets, and the repayment has been halted since last March.

Following due diligence following the suspension of redemption, it emerged that the default of the fund accumulated because the manager of the parent fund, Tandem, did not comply with the agreement to replace the non-performing bonds with normal bonds within 5 working days.

Kyobo Securities, which created a fund in Korea, replaced its manager with PGCM in May due to non-compliance with the deal.

From the remaining assets, it was found that there was a lower share of return for investors by subtracting the redemption of TRS contracts with domestic securities companies.

Shinhan Bank said: “We will do our best to recover the investment amount as soon as possible after examining all possible countermeasures, investigating the illegal and illegal management of foreign fund managers.”