Truston Asset Management Launches ‘Truston KOSDAQ Venture IPO REITs’ Fund

[Asia Economy Reporter Minji Lee] Truston Asset Management announced on the 10th the launch of the Truston KOSDAQ Venture IPO REIT Fund, which primarily operates with a strategy of investing in KOSDAQ venture IPO stocks and REITs.

The KOSDAQ Venture Fund is a product that offers individual investors income tax deduction benefits and a preferential allocation of 30% of KOSDAQ IPO stocks. For KOSPI IPO stocks, investors receive allocations in the same manner as institutional investors, making it attractive for KOSPI IPO investments as well. This year, with major IPOs such as KakaoBank and Krafton on the horizon, investor interest in IPO investments is expected to increase further.

To qualify for income tax deduction benefits, investors must hold at least 15% in new shares of venture companies and at least 35% in KOSDAQ-listed companies that are either venture companies or within seven years of losing their venture company status. The fund also benefits from preferential allocation of KOSDAQ IPO stocks. If the fund is maintained for three years after subscription, investors can receive an income tax deduction of up to 10% of their investment, with a maximum of 3 million KRW.

Up to 20% of the assets are invested in listed REITs. REIT investments are expected to provide dividend yields of around 5-7% and potential capital gains from price appreciation, which can help reduce volatility.

Executive Director Kyuho Lee of Truston Asset Management explained, “Due to regulations requiring mandatory investment of more than 50% in venture companies, the KOSDAQ Venture Fund inevitably experiences higher volatility. We focused on reducing volatility to match the investment preferences of IPO fund investors through hedging strategies using index futures, while steadily generating profits through preferential IPO allocations.”

This fund is currently available for subscription through Korea Investment & Securities and KB Securities.