Korea Fund Announces Adoption of Conditional Tender Offer Policy
The Korea Fund, Inc. (NYSE: KF) has approved a new policy for conducting issuer tender offers for up to 25% of its outstanding shares by September 30, 2024. This action will be triggered if the Fund's total return does not exceed the MSCI Korea 25/50 Index over a specific three-year period. Additionally, the Fund is transitioning its management services to JPMorgan Asset Management. This strategic move aims to enhance performance and shareholder value.
- The new policy allows for potential enhancements in shareholder value through issuer tender offers if performance metrics are not met.
- The transition to JPMorgan Asset Management may improve portfolio management and operational efficiency.
- The requirement for issuer tender offers suggests potential underperformance relative to benchmark indices, which could indicate declining investment effectiveness.
NEW YORK--(BUSINESS WIRE)--The Korea Fund, Inc. (NYSE: KF) (the “Fund”) has announced that its Board of Directors (the “Board”) has adopted a policy (the “Policy”) pursuant to which it will cause the Fund to conduct an issuer tender offer for up to twenty-five percent (
The Board has adopted the Policy in connection with a proposed transition of the Fund’s day-to-day portfolio management, administration, fund accounting, custody and other services to JPMorgan Asset Management (Asia Pacific) Limited and its affiliates (“JPMorgan”), as described in the Fund’s definitive proxy statement filed with the Securities and Exchange Commission on December 1, 2020.
The Korea Fund, Inc. is a non-diversified, closed-end investment company. The Fund seeks long-term capital appreciation through investing primarily in equity securities trading on the Korean stock exchanges. Its shares are listed on the New York Stock Exchange under the symbol “KF.”
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Data as of September 30, 2020
Disclaimer
The Korea Fund, Inc. is a non-diversified, closed-end investment company. The Fund seeks long-term capital appreciation through investing primarily in equity securities trading on the Korean stock exchanges. Its shares are listed on the New York Stock Exchange under the symbol “KF.”
Allianz Global Investors U.S. LLC is the Fund’s investment manager. Investment in closed-end funds involves risks. Additional risks are associated with international investing, such as currency fluctuation, government regulations, economic changes and differences in liquidity, which may increase the volatility of your investment. Foreign securities markets generally exhibit greater price volatility and are less liquid than the U.S. market. Additionally, this Fund focuses its investments in certain geographical regions, thereby increasing its vulnerability to developments in that region. All of these factors potentially subject the Fund’s shares to greater price volatility. The NAV of the Fund will fluctuate with the value of the underlying securities. Closed-end funds trade on their market value, not NAV, and closed-end funds often trade at a discount to their NAV.
The Fund’s daily New York Stock Exchange closing market price and NAV per share, as well as other information, including updated portfolio statistics and performance are available at www.thekoreafund.com or by calling the Fund’s stockholder servicing agent at (800) 254-5197.
Statements made in this release that look forward in time involve risks and uncertainties and are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such risks and uncertainties include, without limitation, the adverse effect from a decline in the securities markets or a decline in the Fund’s performance, a general downturn in the economy, competition from other companies, changes in government policy or regulation, inability to attract or retain key employees, inability to implement its operating strategy and/or acquisition strategy, and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations.
This announcement is not an offer to purchase or the solicitation of an offer to sell shares of the Fund or a prospectus, circular or representation intended for use in the purchase or sale of Fund shares.
Fund shares are not FDIC-insured and are not deposits or other obligations of, or guaranteed by, any bank. Fund shares involve investment risk, including possible loss of principal.
