VIP Unyong, No.1 Public Offering Fund Matures with 22% Return

VIP Asset Management announced on the 2nd that its first public offering fund launched in February 2023, 'VIP The First Fund', was liquidated with a return of 22%.

The VIP The First Fund, a private investment fund-of-funds structure that diversifies investment across seven profit-sharing private equity funds, recorded a full subscription of 30 billion KRW on its first day of launch. It achieved a 22% return over 1 year and 10 months.

VIP Asset Management focused on discovering individual stocks during the fund management process. Moving beyond the limited domestic market, it built a portfolio centered on companies that deliver results in the global market and recognize the importance of shareholder value, proactively embracing change.

The top holding in the fund, Meritz Financial Group, was recognized as an exemplary value-up company and boosted the overall fund return. Stocks included through VIP Asset Management’s independent research, such as Samyang Foods, a key player in the K-food wave, Hanwha Aerospace, a leading figure in K-defense, and PharmaResearch, a pioneer in K-beauty, showed high returns.

The advantage of the 'multi-manager' system, where four managers with different styles led the fund in a relay fashion, was also highlighted. At the fund’s inception, Manager Cho Chang-hyun, who had a high proportion of entertainment stocks, stood out, followed by Manager Park Sung-jae, who focused on secondary batteries and IT until summer, showing notable returns.

When growth stocks sharply declined, Manager Choi Jun-chul’s selection of high-quality consumer goods stocks helped defend returns. Last year, Manager Kim Min-guk’s deep value stocks were re-evaluated by the market through value-up and shareholder returns, driving the overall fund performance.

VIP Asset Management explained that the four managers leading the fund at different times complemented each other, maximizing the fund’s returns.

Co-CEO Choi Jun-chul of VIP Asset Management expressed, "I am pleased to have somewhat repaid the trust in value investing through the successful redemption of our first public offering fund."

Co-CEO Kim Min-guk also said, "Many people say there is no hope in the domestic stock market, but prices are cheaper than two years ago," adding, "Our challenge to prove value investing will continue through the VIP Korean-style Value Investment Fund."