Korea Investment & Securities launches global infrastructure dividend fund

Korea Investment & Securities announced Thursday it will begin selling the Korea Real Asset Cohen & Steers Global Infrastructure Annual Dividend Fund, which invests across globally listed real estate investment trusts and infrastructure shares.

The fund allocates 60 percent of its assets to global listed REITs and 40 percent to global infrastructure shares. Rather than traditional real estate sectors such as offices, retail and hotels, the REIT portion focuses on next-generation segments including data centers, cell towers, senior housing and logistics facilities.

The initial subscription period runs for three business days from Monday through Wednesday. Ongoing purchases will be available following the fund's establishment on Nov. 19.

Cohen & Steers, a global real asset specialist, will serve as sub-advisor. The firm has focused on managing listed REITs and listed infrastructure shares for roughly 40 years. Dedicated REIT and infrastructure teams select holdings through bottom-up fundamental research, while a separate asset allocation team tactically adjusts the weighting between the two asset classes based on macroeconomic conditions and the outlook.

Investors may also benefit from preferential tax treatment available to publicly offered real estate collective investment vehicles. Where the relevant tax requirements are met, dividend income generated within the contribution limit over a set period is subject to a reduced separate tax rate of 9 percent, or 9.9 percent including local income tax. The fund also plans to pay an annual dividend.

"It is significant in that it gives retail investors access to scarce global real asset investment opportunities," said Kim Do-hyun, head of the retail customer group at Korea Investment & Securities. "In an environment of persistent inflation and interest rate uncertainty, investment in essential infrastructure assets should also provide a hedging effect."

Korea Investment & Securities also released two education videos Thursday on pension and dividend investing. The videos focus on the tax credit benefits of pension savings accounts available during year-end tax settlements, and key tax information investors should know when investing in domestic stock dividends. The content is designed to help investors review tax-saving items and related regimes they may overlook as the year draws to a close.