16th May 2025 14:25
(Alliance News) - Weiss Korea Opportunity Fund Ltd on Friday reported that its return for 2024 outperformed the benchmark, although both were negative, following the approval in April of its managed wind-down.
The South Korea-focused investor in preference shares delivered a minus 15.9% net asset value total return for 2024. Its benchmark, the MSCI South Korea 25/50 Net Total Return Index, delivered an 18.5% return.
Weiss Korea also noted that it has outperformed the Korea Index since inception, with an 81.1% NAV total return against the index's 41.2%.
The fund's NAV at December 31 was 139.98 pence per share, down from 168.70p at the same time one year prior.
Shares in Weiss Korea were trading 2.1% lower at 140.00p on Friday afternoon in London, and have lost 21% over the past year.
"In our 2024 half yearly report, we mentioned that investors might gain more clarity on South Korea's corporate value-up programme by the end of the year," Weiss Asset Management LP stated. "However, despite some periods of optimism, the CVUP still lacks clarity and effectiveness. A large part of this was due to increased political turmoil in South Korea towards the end of 2024."
Weiss Asset Management also noted that "protectionist [US] trade policies under the Trump administration pose significant risks to the profitability of South Korea's leading companies".
Following a strategic review announced in November, Weiss Korea's board in late February announced its proposal for a managed wind-down. Shareholders "overwhelmingly" approved the proposal at an extraordinary general meeting on April 14.
"Returns of capital to shareholders will be made by way of compulsory redemptions of shares and are anticipated to be made as, and when, sufficient cash is realised to make it economically expedient to do so," Chair Krishna Shanmuganathan said on Friday. "The first return of capital is expected to be made by the end of June 2025."
By Emma Curzon, Alliance News reporter
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