The South Korea Financial Services Commission reported that sales of the second Public Participation Growth Fund reached about KRW 316.2 billion over four days through Oct. 6, equal to 52.7% of its KRW 600 billion target. It also addressed concerns about the first fund’s 1.40% return as of Oct. 6, explaining that early performance has limited relevance for a five-year product whose investments focus on advanced strategic industries, including unlisted companies. The first fund remained in positive territory after its June 12 formation despite declines of about 14.55% in the Korea Composite Stock Price Index and 10.60% in the Korea Securities Dealers Automated Quotations over the same period. The commission said this indicates that subordinated fiscal and fund manager seed investments designed to reduce investors’ long-term risk may be providing some protection.
South Korea Financial Services Commission reports KRW 316.2 billion in second Public Participation Growth Fund sales and addresses return concerns
The South Korea Financial Services Commission reported four-day sales of about KRW 316.2 billion for the second Public Participation Growth Fund, reaching 52.7% of its KRW 600 billion target. It said the first fund’s 1.40% return should be viewed in the context of its five-year investment horizon and noted that it remained positive despite sharp declines in major stock indexes.