Transformed into an IPO-focused fund... Launch of 'KTB Kosdaq Venture IPO Focus' Fund

Extension of Tax Benefits... Actively Utilize 30% Priority Allocation for IPO Shares

[Asia Economy Reporter Minwoo Lee] KTB Asset Management, a subsidiary of KTB Investment & Securities, is newly launching the 'KTB Kosdaq Venture IPO Focus' fund, formerly known as the 'KTB Kosdaq Venture No. 2' fund.

KTB Investment & Securities announced on the 3rd that they have changed the fund name and revised the management strategy accordingly.

The core of this change is to actively utilize Kosdaq hedge strategies with a focus on IPO returns. The strategy involves hedging by flexibly adjusting marketable stocks at an appropriate level through investments in Kosdaq inverse exchange-traded funds (ETFs) and short selling index futures. It is explained that this approach maximizes operational advantages to secure a 30% priority allocation of Kosdaq IPO stocks.

Previously, KTB Asset Management launched the 'KTB Kosdaq Venture No. 1' fund in April 2018. After the 'soft closing' (temporary suspension of sales) of the No. 1 fund, which was the largest public fund, the 'KTB Kosdaq Venture No. 2' fund was additionally established on May 21, 2018, to ensure stable inclusion of new venture stocks. The No. 2 fund recorded a one-year return of 59.93% and a return of 43.08% since inception.

The Kosdaq Venture fund’s income tax deduction benefit was originally scheduled to expire at the end of last year, but the Financial Services Commission extended the benefit for subscribers who joined before December 31, 2022, through legal amendments. If the fund is maintained for three years after subscription, investors can receive a 10% income tax deduction on their investment, up to a maximum of 3 million KRW.

The ‘KTB Kosdaq Venture IPO Focus’ fund is available for subscription at KTB Investment & Securities as well as major securities firms and banks nationwide. A KTB Asset Management official stated, "The KTB Kosdaq Venture IPO Focus fund seeks stable returns through IPO investments," adding, "For investors feeling burdened by the stock market’s rise over the past year, an IPO investment fund will offer another option."