President Moon earned 28 million won in one year

'Pilsung Korea Fund' Mid-to-Long Term Growth Recognition
Interest Rises, 56% High Returns in One Year
More Than Twice the KOSPI Increase Rate

[Asia Economy Reporter Minji Lee] The 'Pilsung Korea Fund,' which invests in materials, parts, and equipment (SoBuJang) companies, has recorded a high return of 56% in just one year. It is estimated that President Moon Jae-in, who invested 50 million KRW in this fund, has earned about 28 million KRW in profits so far.

According to NH-Amundi Asset Management's 'Pilsung Korea 1st Anniversary Performance Report' on the 10th, the fund achieved a return of 56.12% over one year, more than twice the KOSPI's increase rate of 22%. Despite the impact of the novel coronavirus (COVID-19), investor interest in mid- to long-term growth themes increased, leading to a significant rise in the stock prices of SoBuJang companies. The cumulative sales amount of this fund is approximately 400 billion KRW. Due to profit-taking redemptions following favorable returns, the fund size as of this date is 123 billion KRW.

The Pilsung Korea Fund is an equity fund that invests in Korean companies in the SoBuJang sector, which has faced difficulties due to Japan's trade restrictions, focusing on those that have expanded market share and gained global competitiveness through localization. NH-Amundi Asset Management, which manages this fund, stated, "Companies related to semiconductor materials and parts, eco-friendly parts, and IT materials and equipment showed favorable performance," adding, "Some companies among the investment targets have seen their corporate value increase by more than 300%."

As of the end of last month, the Pilsung Korea Fund invested in a total of 68 stocks. Among these, 36 stocks were SoBuJang companies, accounting for 41% of the total. The top 10 companies with the highest investment weights included Samsung Electronics (22%), SNS Tech (4.56%), Naver (4.49%), LG Chem (4.08%), SK Hynix (3.85%), Kakao (3.34%), Sanga Front Tech (3.24%), Dongjin Semichem (2.62%), Samsung SDI (2.52%), and Duksan Neolux (2.34%).

The company explained, "The SoBuJang sector consists mostly of small- and mid-cap stocks, so its market capitalization share in the domestic stock market is less than 10%. Considering this, the investment weight in this sector is relatively higher compared to other products."

Since its launch on August 14 last year, the Pilsung Korea Fund has established itself as a 'patriotic fund' as key figures such as President Moon, ministers, and provincial governors have joined. President Moon chose the Pilsung Korea Fund as his first-ever fund on August 26 last year, investing about 50 million KRW.

As of this date, it is estimated that President Moon has earned a profit of about 28 million KRW in less than a year since his investment. Considering that the KOSPI fell by about 1.13% at the time President Moon joined compared to the fund's inception date, the fund's return is expected to be higher than the one-year return of 56.12%.

NH-Amundi Asset Management plans to maintain the current proportion of semiconductor and secondary battery value chains, which are expected to grow in the mid to long term, while expanding interest in companies related to the Green New Deal policy. Promising investment targets include SoBuJang companies related to hydrogen vehicles, wind power, and solar energy.

Baeyounghoon, CEO of NH-Amundi Asset Management, said, "We invested in 39 domestic SoBuJang stocks over one year, contributing to the enhancement of corporate value and delivering high returns to investors," adding, "The funds raised so far will be used to support research for the development of the domestic SoBuJang industry." He continued, "The ESG (Environmental, Social Responsibility, Governance) products to be launched in the future are directly linked to Korea's sustainable survival and future, so we will strive to establish them as flagship funds."

[Image source=Yonhap News]

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