KCGI's new Korea dividend growth fund pulls in 31.1B won on day one
What's the deal? KCGI Asset Management launched the "KCGI Korea Dividend Growth Securities Feeder Investment Trust" on July 10, drawing 31.1 billion won in inflows on its first day. The fund invests in domestic dividend growth stocks and can be subscribed through KCGI Asset Management, Daishin SecuritiesDealroom has a profile for this one. Try Dealroom →, and Meritz SecuritiesDealroom has a profile for this one. Try Dealroom →.
What's the endgame? Rather than chasing high dividend yields, the fund targets "quality dividend growth stocks" whose payouts rise alongside sustained earnings. It applies four criteria — earnings, dividends, growth potential, and shareholder returns — while assessing financial soundness, governance, and dividend sustainability.
The portfolio centres on companies expanding their dividend payout ratio with rising earnings; firms with strong medium- to long-term earnings visibility and a payout ratio of 40% or more; and those with above-average dividend yields.
Why now? KCGI cited rising net profit and shareholder returns among listed Korean companies, even as the market's dividend appeal stays low versus global peers. The firm plans to find profit opportunities as that gap narrows.
The strategy: "In volatile markets, we reduce volatility through dividend stocks while selectively incorporating growth stocks with sustained earnings growth," a KCGI official said. The aim is "a hybrid strategy that secures relative defensiveness in down markets while not being left behind during market rebounds."
The details: The fund is a feeder-type, open-end public offering fund that invests more than 60% of trust assets in domestic stocks and runs without maturity. It charges no redemption fee, even for early exits.
The signal: The strong first-day inflow reflects growing investor appetite for income-oriented Korean equity products, as improving corporate earnings and shareholder returns raise expectations that the domestic market's long-standing dividend discount could narrow.
Read more: en.sedaily.com
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