Question about Weiss Korea Opportunity Fund (WKOF)

[AtlCDore]

Does anyone currently own this fund?  It trades in London and holds Korean Pfds.  I was told by Schwab that I was unable to buy the fund as an American.  I contacted the company and was told that they have American investors and there are no restrictions for an American to own.

 

Thanks,

 

AtlCDore

[bobozou]

All I know is...

 

1) Fidelity also wouldn't let me purchase this issue

 

2) This is what their (WKOF) website states (pardon the legalese):

 

Due to legal restrictions, the contents of the following web pages may not be accessed by persons who are located in the United States, Canada, Australia, Japan or South Africa or who otherwise are US persons ("U.S. Persons") as defined in RegulationS under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), anywhere in the world.

 

The Company's Articles of Association contain provisions designed to restrict the holding of shares by persons, including U.S. Persons, where in the opinion of the Directors such a holding could cause or be likely to cause the Company some legal, regulatory, pecuniary, tax or material administrative disadvantage. No Benefit Plan Investor (as defmed in U.S. Department of Labor Regulation 29 C.F.R. § 2510.3.101 and Section 3(42) of the U.S. Employee Retirement Income Security Act of 1974, as amended) may acquire shares without the Company's prior written consent.

 

None of the information contained on the following pages nor any copy thereof may be taken or transmitted in or into the United States or distributed, directly or indirectly, in or into the United States or to U.S. Persons. Persons present in the United States of America or who are otherwise U.S. Persons, are not permitted to access this section of the website and should exit it immediately.

 

by checking I am asserting that I am not in one of the following countries: Canada, Australia, the Republic of South Africa, the Republic of Ireland, Japan, or the United States.

[AtlCDore]

bobzou,

 

Thanks for the response.  I thought Fidelity may let someone purchase.  I exchanged emails with the company and asked about that statement and the guy emailed back,

 

"No there are quite a few US investors in the fund, in fact 3 of the 5 biggest shareholders are US based. It is listed on the Stock Exchange here in London so anyone can buy it. I think the restrictions are more on marketing in the US, and also there is potentially a problem if a very significant percentage of US investors own shares."

 

Thanks for checking.  Maybe IBKR will allow someone to purchase.  I'll try with them.

 

Best,

 

AtlCDore

[investor-man]

I think it's best to call the international desk at Fidelity directly. I've been told that I can't buy things by the regular desk and then called the international desk and they were able to do it

[muscleman]

bobzou,

 

Thanks for the response.  I thought Fidelity may let someone purchase.  I exchanged emails with the company and asked about that statement and the guy emailed back,

 

"No there are quite a few US investors in the fund, in fact 3 of the 5 biggest shareholders are US based. It is listed on the Stock Exchange here in London so anyone can buy it. I think the restrictions are more on marketing in the US, and also there is potentially a problem if a very significant percentage of US investors own shares."

 

Thanks for checking.  Maybe IBKR will allow someone to purchase.  I'll try with them.

 

Best,

 

AtlCDore

 

US based investors may be careful about the PFIC rules from IRS. :)

[SpecOps]

I own this, though I'm in the UK.

 

It's listed on the Alternative Investment Market (AIM) of the London Stock Exchange, so although you shouldn't have a problem buying shares in theory, it isn't that easy to find a US broker that deals in AIM shares in general. Even a lot of UK brokers don't deal in them.