Fund Profit Dividends of 9.5972 Trillion KRW in the First Half of This Year... Up 25.4% YoY

Private Equity Fund Dividend Size Exceeds Public Fund by Five Times

[Asia Economy Reporter Oh Ju-yeon] Fund profit dividends in the first half of this year increased by more than 25% compared to last year. Among them, the size of dividends from private equity funds exceeded that of public funds by five times.

On the 24th, the Korea Securities Depository announced that fund profit dividends in the first half of 2020 amounted to 9.5972 trillion KRW, a 25.4% increase compared to the same period last year.

Among them, public funds paid 1.4406 trillion KRW, and private equity funds paid 8.1566 trillion KRW, increasing by 12.8% and 28.0% respectively compared to the same period last year. The dividend payment scale between public and private funds shows a 5.7 times difference.

The number of dividend-paying public funds (1,079) increased by 5.2% compared to the same period last year, while the number of dividend-paying private funds (7,292) rose by 18.4%.

By fund type, there was an overall upward trend, with equity funds showing particularly high growth.

Dividends from equity funds amounted to 735.8 billion KRW, a 280.3% increase compared to 193.5 billion KRW in the same period last year, and dividends from other fund types including derivative investment funds (1.9693 trillion KRW) also increased by 51% compared to 1.3041 trillion KRW in the same period last year.

Dividends from bond funds (1.4195 trillion KRW) increased by 17.9% compared to 1.2037 trillion KRW in the same period last year, and dividends from alternative investment funds (real estate, special assets) (4.4818 trillion KRW) also rose by 11.0% compared to 4.0365 trillion KRW in the same period last year, showing a double-digit growth rate.

Dividends from MMFs amounted to 990.8 billion KRW, an 8.4% increase compared to 913.9 billion KRW in the same period last year.

Among the fund profit dividends paid in the first half of this year, the amount reinvested in the respective funds was 3.737 trillion KRW, accounting for 38.9% of the total profit dividends.

The reinvestment amount was 1.233 trillion KRW for public funds and 2.504 trillion KRW for private funds, with reinvestment rates of 85.6% (public funds) and 30.7% (private funds), respectively.

Meanwhile, the total number of newly established funds up to the first half of this year was 2,041, with a total new establishment amount of 35.1765 trillion KRW. This represents a 41.8% decrease compared to the same period last year. Liquidation distribution amounted to 27.0097 trillion KRW, a 0.8% increase compared to the same period last year.

The Depository analyzed, "Due to the economic recession caused by COVID-19, redemptions and repayment delays by some specialized private equity funds, the number of newly established and liquidated funds in the first half significantly decreased, and the amount of liquidation distribution payments showed only a slight increase."

Looking at the status of new establishments and liquidation distributions by fundraising method, the new establishment amount for public funds was 4.298 trillion KRW, down 8.2% compared to the same period last year, and liquidation distribution was 1.9125 trillion KRW, down 17.3%.

The new establishment amount for private funds was 30.8785 trillion KRW, down 44.6% compared to the same period last year, while liquidation distribution was 25.0972 trillion KRW, up 2.6% compared to the same period last year.

This content was produced with the assistance of AI translation services.