A Homeplus retailer in Seoul, Sunday / Yonhap
Securities corporations are halting the sale of public funds that embody Homeplus short-term bonds amid considerations over the restoration of funding funds, because the nation’s No. 2 grocery store chain entered company rehabilitation proceedings, business officers mentioned Monday.
NH Funding & Securities and Eugene Funding & Securities suspended the sale of a fund-of-funds created by Mirae Asset World Investments. The product invests in a number of funds, with greater than 50 % of its property allotted to non-public fairness funds, which embody Homeplus short-term bonds of their funding targets.
The full fund dimension is roughly 86 billion received ($59 million).
“We determined to halt the sale of the fund to guard buyers,” a Eugene Funding & Securities official mentioned. “The timing for the resumption of latest purchases will likely be decided primarily based on market circumstances.”
KB Securities and Kiwoom Securities already halted the sale of the fund final Friday. Each corporations cited “investor safety” as the rationale for the suspension on their web sites.
Mirae Asset World Investments, which manages the fund, mentioned that Homeplus-related property within the fund are small and have been written down, so there are not any points with redemptions or different transactions.
On March 4, Homeplus filed for company rehabilitation with the Seoul Chapter Court docket, stating, “The choice was inevitable to proactively ease potential short-term monetary burdens arising from a credit standing downgrade.”
Its company bond ranking was downgraded from A3 to A3- on the finish of final month.
