Business · Markets · 3 hrs ago
South Korea growth fund returns 0.5% in its first three months
South Korea’s Public Participation Growth Fund returned 0.5% in its first three months, based on figures dated September 11.
The five-year, closed-end fund invests in advanced strategic industries and companies that are not publicly listed.
Its 10 smaller funds had returns ranging from a 19.86% loss to a 3.15% gain, but government money and fund managers’ lower-priority investments absorb losses first, up to about 20%.
Financial officials say it is too early to judge the fund, because it has only just begun investing and some assets are difficult to value quickly.
The second fund raised 5.198 trillion won, or 86.6% of its 6 trillion won target, with 32,756 investors.
Its managers plan to direct at least 60% of its money to advanced strategic industries and provide new funding to unlisted companies and certain technology-focused firms listed on the Kosdaq.
The fund’s investment performance and risk controls will be monitored as it continues its five-year term.
South Korea’s first National Growth Participation Fund returned 0.5% in its first three months.
The fund was set up on June 12 and its reported returns were measured through September 11.
Returns among its 10 sub-funds ranged from a loss of 19.86% to a gain of 3.15%.
The Financial Services Commission said the five-year closed-end fund needs time to deliver visible results.
A second fund raised 5,198 billion won, reaching 86.6% of its 6,000 billion won target.
- Who
- South Korea’s National Growth Participation Fund and the Financial Services Commission.
- What
- The fund returned 0.5% in its first three months. Officials said it was too early to judge its longer-term performance.
- When
- The first fund’s return period ran from June 12 to September 11; the report was disclosed on October 26.
- Where
- South Korea. The fund managers’ meeting was held at the Korea Financial Investment Association in Seoul.
- Why
- The fund invests for the long term in advanced strategic industries and unlisted companies, and officials said visible results will take time.
This story does not have two clearly opposing sides.
The first fund was established.
The return calculation period for the first fund ended.
The first fund’s asset management report was disclosed.
Shin Jin-chang told managers that visible results would take time at a meeting in Seoul.
- First fund return
- 0.5% over three months
- Sub-fund returns
- -19.86% to 3.15%
- Fund term
- Five years
- Second fund raised
- 5,198 billion won
- Second fund target
- 6,000 billion won
- Second fund subscribers
- 32,756
What people are saying
The National Growth Participation Fund is a five-year closed-end fund, and it is still in its early stages of operation.
It will take a considerable amount of time to achieve visible results.
Rather than being swayed by the current rate of return, I ask that you look at the fund’s performance over the long term so that companies and the fund can grow together.