Second Public Participation Growth Fund reaches 55% of target; full sales to the public begin tomorrow

[Financial News] The Second Public Participation-type National Growth Fund (Public Participation Growth Fund) had sold 55% of its target within five business days of launch. From the 8th, when priority allocation for lower-income investors and limits on the share sold online end, the barrier to entry for general investors is expected to fall considerably.
According to the Financial Services Commission on the 7th, cumulative sales of the Second Public Participation Growth Fund over the five days from September 30 through the 7th totaled 330.16 billion won. That represents 55% of its overall target of 600 billion won.
By sales channel, 14 securities firms recorded about 189.19 billion won (57.3%), exceeding the 140.97 billion won (42.7%) recorded by 10 banks. This contrasts with the first fund in May, when allocations at the five major banks sold out in just two hours. The trend is seen as reflecting weaker investment sentiment among bank customers, who tend to favor relatively stable investments, amid increased stock market volatility and initial returns that fell short of expectations.

For the first five business days, financial authorities reserved 50% of the overall target exclusively for lower-income investors to ensure they had an opportunity to subscribe. During that period, subscriptions by lower-income investors totaled about 111.5 billion won, accounting for 34% of all sales—a share similar to the approximately 35% recorded for the first fund.
Despite limiting the share of sales made online (40% for banks and 60% for securities firms) to protect in-branch subscriptions, the shift toward online subscriptions was pronounced. Online subscriptions totaled 253.21 billion won, or 76.7% of all sales. The online share by financial sector was 74% for banks (105.11 billion won) and 78.6% for securities firms (148.1 billion won).

The remaining allocations currently stand at 160.81 billion won for securities firms and 109.03 billion won for banks.
Among banks, the largest remaining amounts are at KB Kookmin Bank (24.66 billion won), Shinhan Bank (21.34 billion won), Woori Bank (17.42 billion won) and Nonghyup Bank (13.32 billion won), in that order. Among securities firms, Mirae Asset Securities has the largest remaining allocation, at 36.28 billion won. Amounts still available include 15.09 billion won at NH Investment & Securities, 14.52 billion won at KB Securities and 12.64 billion won at Kiwoom Securities. Financial authorities adjusted some of the allocations for each seller based on sales over the five-day period.
From the sixth business day, the 8th, through the final sales deadline on the 15th, priority allocation for lower-income investors and limits on online sales will be fully lifted. Sales will continue, regardless of whether they are online or in person, until all remaining allocations are exhausted. Existing subscribers to the second fund may also subscribe for more, provided they remain within the annual contribution limit of 100 million won. With the restrictions lifted, inflows from general investors who were unable to subscribe during the first week because of the limits are expected to accelerate.

[email protected] Park Ji-hyun Reporter