Input 2021.01.28 06:00
According to the financial investment industry on the 27th, there is a saying among fund managers that “the funds are out of stock from equity funds, but they have taken a breath away from public offering funds and KOSDAQ venture funds.”
A fund manager said, “As the IPO schedule is scheduled for this year, the public offering stock market is expected to grow even further, and this year, following last year, there is a voice that we should focus on the public offering fund and the KOSDAQ venture fund.” Another industry official also said, “Both institutions and individuals like public offerings, and public offering funds have no choice but to sell well because of their volatility.”
In terms of returns alone, domestic equity-type funds are still high, but it seems that funds are driven by the expectation that the public offering-related returns may rise further in the future due to the public offering market success. The recent one-month return of domestic equity funds is 16.83%, public offering fund 2.69%, and KOSDAQ venture fund 7.22%.
Hee-eun Choi, manager of the active management division of KB Asset Management, explained, “There are many IPO stocks that meet the expectations of the market this year, and the individual supply and demand are so good that the funds will be concentrated in the KOSDAQ Venture Fund, which will concentrate the public offering fund and the public offering stock.” did.
A public offering stock fund is a fund that earns profits by participating in public offering stocks as an institutional investor. The advantage is that institutional investors are more advantageous than individual investors to receive public offerings. Investors can sign up for a small amount without the need to collect a lot of margin. Choi said, “Institutional investors can secure more stock than individual investors and put them in the fund,” said Choi.
Another advantage of a public offering fund is that the fund’s return is not fluctuating due to fluctuations in the public offering stock price. This is because 70-90% of the fund’s assets are invested in high-quality corporate bonds, including government bonds, and the remainder is invested in public offerings. However, it should be noted that the yield may not be as high as that.
The KOSDAQ Venture Fund is also attracting investors’ attention in the public offering stock rally because it has a priority allocation of KOSDAQ public offering stocks. KOSDAQ public offering stocks are allocated 20% for stock ownership associations, 20% for general investors, 10% for high yield funds, 20% for institutional investors, and 30% for KOSDAQ venture funds.
Last year, when Kakao Games, a large fish-class public offering stock, went public on the KOSDAQ market, the KOSDAQ Venture Fund received more Kakao Games public offerings than other funds. At the time, when Kakao Games recorded a continuous upper limit immediately after listing, the yield also increased significantly. Eight out of 10 public offering stocks this month will also be listed on the KOSDAQ market.
Already in January, the public offering stocks are hitting the box office with new records. NBT, which held the first IPO this year, recorded a competition rate of 4397.7 to 1 in the public offering for general subscribers held for the past 12 to 13 days. This is an all-time record of the securities market and the KOSDAQ market combined, and the subscription margin alone was raised 6,951.8 billion won.
The stock market predicted that the public offering market will increase further this year. The total public offering amount increased from 3.5 trillion won in 2019 to 4.4 trillion won last year. F&Guide predicts that this year’s public offering will reach 7.8 trillion won. A number of IPOs such as Krafton, Kakao Bank, and LG Energy Solutions are also waiting. The overflowing liquidity and the distribution method of public offering stocks that have changed to the advantage of individuals are also fueling the craze for offering stocks.