'Moon Jae-in Fund' 5 Funds Yield -17.22%... No Business in a Bear Market

KOSPI Surpasses 3000 in January Last Year... Recorded Returns in the 90% Range
Steep Interest Rate Hikes Lead to Negative Returns
KOSPI -16.05% Over the Same Period

[Asia Economy Reporter Hwang Yoon-joo] The 'New Deal Fund' that President Moon Jae-in joined early last year also took a direct hit from the interest rate hikes as his official term ends today. While the fund's returns once exceeded 90% last year, recent returns have been reported to be in the negative.

According to the financial investment industry on the 9th, the arithmetic average return of six funds?five 'New Deal Funds' that President Moon invested in on January 15 last year to encourage the 'Korean New Deal' policy, and one 'Pilsung Korea Fund' invested in since August 2019?recorded -17.22%.

Previously, President Moon invested 10 million KRW each in five 'New Deal Funds' considering the digital sector, green sector, and small and medium-sized enterprises. In the case of the 'Pilsung Korea Fund,' the principal of 50 million KRW was kept intact while reinvesting the earnings. The total estimated valuation of these funds is currently around 87.57 million KRW.

Based on a total investment principal of 100 million KRW, the return rate was -12.43%.

During the same period, as the KOSPI and KOSDAQ fell by 16.05% and 9.80% respectively, funds investing in domestic stocks also incurred losses.

The 'New Deal Funds' President Moon subscribed to are ▲ 'TIGER BBIG K-New Deal ETF' ▲ 'HANARO Fn K-New Deal Digital Plus ETF' ▲ 'Samsung New Deal Korea Fund' ▲ 'KB Korea New Deal Fund' ▲ 'Beautiful SRI Green New Deal 1 Fund.'

The fund returns generally remained positive until last summer when the KOSPI and KOSDAQ continued their upward trend. However, losses increased as the stock market began to decline in the second half of the year.

In particular, the exchange-traded funds (ETFs) investing in growth stocks with recent large declines, 'TIGER BBIG K-New Deal ETF' (-35.68%) and 'HANARO Fn K-New Deal Digital Plus ETF' (-30.44%), have fallen more than 30% since President Moon's subscription date.

Actively managed funds by fund managers also showed poor returns. The 'Beautiful SRI Green New Deal 1 Fund' (-18.05%) underperformed the KOSPI returns, and the 'KB Korea New Deal Fund' (-12.93%) also suffered losses exceeding 10%.

Relatively, the 'Samsung New Deal Korea Fund' (-0.97%) and the 'Pilsung Korea Fund' (-5.24%) withstood the downturn better despite being in the loss zone.

President Moon joined the 'Pilsung Korea Fund,' which mainly invests in domestic 소재·부품·장비 (materials, parts, and equipment) companies, in August 2019 as a measure to overcome Japan's export restrictions. The 'Pilsung Korea Fund' attracted significant attention as President Moon personally visited the sales office to subscribe, and government and ruling party officials also joined consecutively.

The period when President Moon partially realized profits from the 'Pilsung Korea Fund' was January last year, when the KOSPI surpassed 3000 and was rising rapidly. At that time, the fund's return rate was reported to be in the 90% range.

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