Total net asset value of funds in Korea rose 2.2 percent in June to top 620 trillion won ($525 billion) amid recovery in stock markets at home and abroad and robust appetite for bonds on expectations for monetary easing in the U.S. and Korea.
According to data released by Korea Financial Investment Association on Tuesday, the total net asset value of local funds gained 2.2 percent or 13.5 trillion won to 620.97 trillion won in June from a month earlier. Total fund assets under management rose 1.8 percent to 615.49 trillion won over the same period.
The net asset value of equity funds, with investment in local and foreign stocks, grew 2.9 percent on month to 80.6 trillion won, following the recovery in stock markets at home and abroad. The net asset value of funds investing in local stocks increased 3.0 percent on month to 1.7 trillion won, despite a net outflow of 26 billion won. Funds invested in foreign stocks recorded a net outflow of 100 billion won but the net asset value rose 2.6 percent to 21.5 trillion won from a month earlier.
The net asset value of bond funds gained 2.8 percent to 121 trillion won from a month earlier as the demand for the bonds grew stronger amid the U.S Federal Reserve’s hint on interest rate cut. Funds investing in local debts marked a net inflow of 2.2 trillion won to result in net asset value of 112.6 trillion won, up 2.6 percent from the previous month. Net asset value of funds investing in foreign debts expanded 5 percent on month to 8.4 trillion won with net inflow of 200 billion won.
Money market funds lost 3.4 trillion won, leading to 3.1 percent on-month fall in net asset value to 104.4 trillion won. The net asset value of derivative funds amounted to 1.6 trillion won, up 3.1 percent from a month earlier.
The net asset value of real estate funds rose 3 percent to 88.1 trillion won and that of special funds was up 5.4 percent at 82.7 trillion won.
By Kim Je-lim and Cho Jeehyun
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