Weiss Korea Opportunity Fund announces managed wind-down after strategic review

LONDON - Weiss Korea Opportunity (SO:FTCE11B) Fund Ltd. (the "Company"), an investment fund focusing on South Korean preference shares, has announced a managed wind-down following a strategic review. The decision comes after the fund’s net asset value (NAV) declined by 15.9% in the year ending December 31, 2024, outperforming the MSCI South Korea 25/50 Net Total (EPA:TTEF) Return Index by 2.6%.

Despite the outperformance, the fund’s investment manager notified the board in November 2024 that the strategy and opportunity set for the fund were less attractive than in the past, and unlikely to improve in the foreseeable future. This assessment was influenced by narrowing discounts of large, liquid preference shares and South Korea’s financial market reforms, which allow for more cost-effective investment methods.

After considering various strategic options, including a change of investment mandate or a combination with another investment company, the board concluded that a managed wind-down would be in the best interest of shareholders. The wind-down was approved by shareholders at an Extraordinary General Meeting on April 14, 2025.

During the wind-down, the fund will aim to realize its assets while balancing the achievement of the best value and timely capital returns to shareholders. The first capital return is expected by the end of June 2025. The fund will cease making new investments and plans to maintain trading on the AIM as long as it remains practicable.

The board is authorized to repurchase up to 40% of the fund’s outstanding ordinary shares, but does not anticipate buybacks given the managed wind-down. The fund’s performance since its inception in May 2013 has seen an NAV increase of 81.1%, with a cumulative outperformance of 39.9% over the Korea Index.

The fund declared an interim dividend yield of 5.1851 pence per share in May 2024, equating to a 3.8% net dividend yield over the past 12 months. The dividend was paid to shareholders on June 24, 2024.

The company’s financial statements as of December 31, 2024, show a net assets value of £96,960,467, with a NAV per ordinary share of £1.3998. The fund’s total assets stood at £97,959,781, while total liabilities were at £999,314.

This article is based on a press release statement from Weiss Korea Opportunity Fund Ltd.

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