President Moon Jae-in's New Deal Fund Investment After 3 Months
Mostly Negative Returns
Individual Factors Determine Profits More Than New Deal Policy Benefits
[Asia Economy Reporter Hwang Junho] The New Deal Fund, which President Moon Jae-in subscribed to, was not spared from the market correction.
According to the financial investment industry on the 6th, among the three funds and two ETFs that President Moon subscribed to, all except the Samsung New Deal Korea Securities Investment Trust (3.14%) recorded negative returns (-1.61% to -6.78%).
The product with the largest loss in returns was Mirae Asset Management's TIGER KRX BBIG K-New Deal (ETF), heavily impacted by the sharp decline in stocks such as Samsung SDI, one of the leading secondary battery stocks, and SK Biopharm, which had high expectations due to its public offering subscription. Samsung SDI's stock price dropped significantly after Volkswagen announced the replacement of its main battery, and SK Biopharm's stock plummeted following the major shareholder's stake sale.
The NH-Amundi Hanaro Fn K-New Deal Digital Plus Securities Listed Index Investment Trust (ETF, -5.32%) holds a significant portion of NCSoft following Samsung SDI, but its stock price fell recently due to a boycott movement. The KB Korea New Deal Securities Investment Trust (fund, -3.54%) also saw weakness in growth and environment-related stocks due to the recent sharp rise in market interest rates.
Industry insiders evaluated that the closer the products were to the government’s ‘Korean New Deal’ policy, the lower the returns were. A representative from the asset management industry analyzed, "Since the Korean New Deal is a long-term task and not a policy with guaranteed benefits, it does not have a significant impact on fund returns," adding, "The materials related to individual companies invested in by funds such as BBIG (Battery, Bio, Internet, Game) have a more direct impact on stock prices and fund returns."
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