Recovered the 800 Mark on Closing Price After 1 Year and 9 Months... 44.7 Billion KRW Inflow Over 3 Months, Net Assets Also Recovered to 500 Billion KRW
[Asia Economy Reporter Song Hwajeong] As the KOSDAQ surpassed the 800 mark for the first time in 21 months, KOSDAQ Venture Funds are also showing strong performance. With favorable returns continuing, funds are steadily flowing in.
According to financial information provider FnGuide on the 24th, the average 3-month return of 13 KOSDAQ Venture Funds reached 24.63%. The year-to-date increase was also recorded at 16.09%.
Looking at returns by fund, Samsung KOSDAQ Venture Plus Securities Investment Trust 1 [Equity] Ae posted a 3-month return of 38.64%, and Mirae Asset KOSDAQ Venture Company Securities Investment Trust 1 (Equity) Type A recorded 43.92%. Asset One Public Offering KOSDAQ Venture Company Securities Investment Trust [Equity Mixed-Derivative Type] Type C-F earned 18.29%, and KTB KOSDAQ Venture Securities Investment Trust 2 [Equity Mixed] Type A achieved 21.81% returns.
Funds are also continuously flowing in. Over the past 3 months, 44.7 billion KRW has been injected, restoring net assets to 500 billion KRW.
The favorable returns and capital inflow into KOSDAQ Venture Funds are interpreted as results of the strong KOSDAQ market and the recently revived Initial Public Offering (IPO) activities. The KOSDAQ index rose 19.69% year-to-date through the previous day, and increased 24% over the past 3 months. Notably, the KOSDAQ closed at 801.69 the previous day, recovering the 800 level for the first time in 21 months since October 2018. The strength of the pharmaceutical and bio sectors drove the index's rise. The KOSDAQ Pharmaceutical Index rose 41.07% over 3 months, and the KOSDAQ 150 Healthcare Index jumped 38.17%. Other sectors such as Paper & Wood (39.78%), Metals (28.45%), KOSDAQ IT (24.56%), and Chemicals (21.95%) also recorded significant gains.
The IPO market, which had frozen due to the novel coronavirus disease (COVID-19), has recently regained momentum, positively impacting KOSDAQ Venture Funds. KOSDAQ Venture Funds receive priority allocation of 30% of the public offering shares of newly listed companies on the KOSDAQ market. According to the Korea Exchange, the number of newly listed KOSDAQ companies was zero in April due to COVID-19, but showed recovery with 2 in May, 6 in June, and 10 companies listed this month.
Choi Jong-kyung, a researcher at Heungkuk Securities, said, "Although we experienced a dry spell with only one demand forecast in the 3 months from March to May, the number of companies conducting demand forecasts for new listings has revived, exceeding the average level from 8 in June to 13 this month." He added, "The number of new listings this year is expected to be 70, a 4.1% decrease from last year, while the public offering size is expected to increase significantly by 58% to 5.5 trillion KRW. This indicates a meaningful rebound with a slight decrease in the number of companies but a substantial increase in the offering size compared to last year."
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