Strong Start for National Participation New Deal Fund Sales... 'Sold Out' in Some Areas from Day One

[Asia Economy Reporter Hyunseok Yoo] The 국민참여정책형 New Deal Fund (hereinafter 국민참여 New Deal Fund) showed strong sales performance, with some distributors selling out on the first day of sales.

On the 29th, according to the financial investment industry, Korea Post Securities announced that all allocated quotas for the 국민참여 New Deal Fund were sold out on that day.

Post Securities was the only one among the 15 distributors of the 국민참여 New Deal Fund that allowed non-face-to-face subscriptions.

Also, Korea Investment & Securities and Yuanta Securities, which sold only through non-face-to-face channels, completed sales of their allocated quotas of 14 billion KRW and 9 billion KRW, respectively.

In addition, other distributors such as Shinhan Financial Investment and Hanwha Investment & Securities also sold a significant portion of their allocated quotas, increasing the likelihood of a complete sell-out by the 30th.

The 국민참여 New Deal Fund is a private placement fund that mainly invests in equity and mezzanine securities issued by companies in the New Deal sector. It is raised with a total scale of 200 billion KRW. The fund invests in beneficiary certificates of 10 sub-funds operated as private funds. General investors participating in the senior tranche do not incur losses until the fund's net asset value falls by 21.5%. Even if the fund value halves, the loss rate is limited to 36.3%.

However, in the range where the yield exceeds 20%, excess returns are allocated between senior and subordinated investors at a ratio of 4 to 6.

Additionally, the fund is structured as a 4-year closed-end fund, making early redemption impossible, but it is expected to be listed within 90 days. It is anticipated that funds can be recovered early through subsequent trading.

The distributors include seven banks: IBK Industrial Bank, KB Kookmin Bank, KDB Industrial Bank, NH Nonghyup Bank, Shinhan Bank, Woori Bank, and Hana Bank; and eight securities firms: IBK Investment & Securities, KB Securities, Shinhan Financial Investment, Yuanta Securities, Hana Financial Investment, Korea Investment & Securities, Hanwha Investment & Securities, and Post Securities. Among these, KB Kookmin Bank and KB Securities will start sales from the 1st of next month.

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