About Us

Investment strategy

Weiss Korea Opportunity Fund (“WKOF”) invests primarily in listed South Korean preference shares trading at a discount to common shares of the same issuers. South Korean preference shares are equity shares that are generally entitled to receive the same dividends as common shares. Unlike the common shares, preference shares typically receive an additional fixed payment and have no voting rights. As a result of their discount to the common shares, South Korean preference shares’ price-to-earnings ratios are typically lower and the dividend yields higher than their respective common shares.

Fund Information (as of 19 Jan 2021)

Ticker (London)WKOF
Net Assets£224,083,017
NAV/Share£2.75
Price/ Share£2.62
Premium/(Discount)(4.6%)
Median Premium/(Discount)1(2.4%)
Dividend Yield21.51%
Inception14 May 2013
ExchangeAIM
ISINGG00B933LL68
SEDOLB933LL6
Investment ManagerWeiss Asset Management LP
www.weissasset.com
Broker & NOMADNplus1 Singer Advisory LLP
T: (44) 20 7496 3000

WKOF Fact Sheet

Fund Performance

Performance (as of 22 Jan 2021)



Performance (as of 31 Dec 2020)

MonthYTD12 MonthSince Inception6
Weiss Korea Opportunity Fund NAV3,414.0%63.7%63.7%183.9%
MSCI Korea 25/50 Net Total Return Index4,512.5%36.4%36.4%97.1%
iShares MSCI Korea UCITS ETF412.3%39.1%39.1%100.6%

Portfolio

Portfolio Statistics (as of 31 Dec 2020)

Portfolio Discount749.0%
Average Trailing 12-Month P/E Ratio of Preference Shares Held89.9x
Trailing Net Dividend Yield of Preference Shares Held91.6%
Number of Positions1045
Percentage of NAV Invested in Preference Shares93.1%


Top 10 Holdings11 (as of 31 Dec 2020)

LG Electronics Inc., Pfd.14%
LG Chem Ltd., Pfd.10%
Samsung Electronics Co., Ltd., Pfd.9%
Samsung Electro-Mechanics Co., Ltd., Pfd.8%
Hyundai Motor Company, 1st Pfd.6%
Hyundai Motor Company, 2nd Pfd.5%
CJ CheilJedang Corp, Pfd.5%
Amorepacific Corp., Pfd.4%
Mirae Asset Daewoo Co., Ltd., 2nd Pfd.4%
Kumho Petro Chemical Co., Ltd., Pfd.4%
Top 10 Holdings67%

 

 

The ‘Portfolio Discount’ in the Portfolio Statistics table represents the discount of WKOF’s actual NAV to the value of what the NAV would be if WKOF held the respective common shares of issuers rather than preference shares on a one-to-one basis.

Korean preference shares trading at wider discounts are most often less liquid than those at narrower discounts. The Investment Manager believes that it is in the interest of shareholders for WKOF to hold less liquid shares if they increase the expected return of the portfolio. The Investment Manager plans to rebalance WKOF’s portfolio, over time, toward preference shares trading at larger discounts, consistent with its view on the most attractive portfolio.

All Investor Reporting

Investment Manager

Weiss Asset Management LP, a Delaware limited partnership formed on 10 June 2003, has been appointed by the Company as Investment Manager and is responsible for the management of the Company's assets pursuant to the Investment Management Agreement. The Investment Manager is registered as an investment adviser with the SEC.

The Investment Manager has combined assets under management of approximately £1.7 billion as of 30 November 2020, including private investment funds with diversified strategies. Dr. Andrew Weiss, who controls the Investment Manager, has been managing private investment funds for over 29 years.

Weiss Asset Management LP was founded by Dr. Andrew M. Weiss, who received his Ph.D. in Economics from Stanford University, was elected a fellow of the Econometric Society in 1989, and is currently Professor Emeritus of Economics at Boston University.

The Investment Manager is principally owned by Dr. Weiss and certain members of the Investment Manager's senior management team. Dr. Weiss has more than 29 years of experience investing professionally. Dr. Weiss and the senior management team have significant investment management experience, particularly with securities trading at discounts to their fundamental value.

Endnotes

1. The median premium or discount of WKOF’s price per share relative to WKOF’s NAV per share, for all published NAVs for the period since inception to the date of this factsheet. Data sourced from Bloomberg.

2. Calculated as the dividend per share over the last 12-months divided by the share price as of the chart date.

3. As noted in the Admission Document, dividends from Korean preferred shares are not accounted for or accrued in the NAV until the amount of each dividend is received. As a result of the foregoing, the NAV published above may not reflect all income contractually due to WKOF as at the stated NAV date. WKOF expects that there are dividends receivable by the WKOF as at the stated NAV date but such dividends have not yet been received so they are not yet included in the NAV. The amount of such dividends is not yet known as of the report date. The NAV published in WKOF's audited financial statements may be different from above as WKOF’s audited financial statements are prepared under IFRS, which will include dividends receivable as part of the NAV. Please refer to the Admission Document for more information regarding the announcement and payment of Korean dividends.

4. For WKOF, this return includes all dividends paid to WKOF’s Shareholders and assumes that these dividends were reinvested in WKOF’s Shares at the next date for which WKOF reports a NAV, at the NAV for that date. MSCI total return indices are calculated as if any dividends paid by constituents are reinvested at their respective closing prices on the ex date of the distribution. iShares MSCI Korea UCITS ETF also assumes reinvestment of dividends.

5. MSCI Korea 25/50 Net Total Return Index, denominated in British pounds sterling.

6. Since inception of Weiss Korea Opportunity Fund on 14 May 2013. The WKOF return since inception is calculated on the basis of the Initial Net Asset Value per Ordinary Share.

7. Represents the discount of WKOF’s actual NAV to the value of what the NAV would be if WKOF held the respective common shares of issuers ra-ther than preferred shares on a one-to-one basis.

8. The Average Trailing 12-Month P/E Ratio of Preferred Shares Held is based on the consolidated diluted earnings per share over the trailing 12-month period as reported by Bloomberg, and is calculated as the total market value of WKOF’s preferred share portfolio on the report date divided by the total earnings allocable to WKOF based on WKOF’s holdings on the report date. Investments with negative reported earnings are excluded.

9. Trailing Net Dividend Yield of Preferred Shares Held represents the weighted average dividend yield of the preferred shares owned by WKOF over the 12-month period ending on the chart date as reported by Bloomberg, after accounting for Korean taxes applicable to WKOF, and weighted by the market value of each investment on the report date. This figure does not estimate or forecast future dividend payments on WKOF's investments.

10. Number of Positions does not include credit default swaps or options held by the portfolio for hedging purposes.

11. Top 10 Holdings is calculated using the market value of all holdings including portfolio hedges.