Investors are tending to prefer bonds the most in the first month of the year among public offering funds with 1 billion won ($810,000) or more in assets under management, according to data from local fund ratings agency FnGuide on Thursday.

Excluding exchange-traded funds and money market funds, which have seen some lump sum deals recently, all top 10 public offering funds that have raised the most money recently have been for bonds.

Over the past month, the Korea Investment Credit Focus ESG Securities Feeder Investment Trust-Bond has raised the most capital, with 182.7 billion won more in AUM.

The Korea Investment E Short-Term Bond ESG Securities Investment Trust-Bond followed, raising 148.8 billion won so far in January. Both products invest in government and corporate bonds traded in Korea.

Mirae Asset Solomon Mid-Long-Term Government & Agency Securities Investment Trust1-Bond, Heungkuk Safe Plus Securities Investment Trust-Bond and Kyobo Axa Ultra Short-Term Prime Securities Investment Trust-Bond have raised 84.5 billion won, 49.7 billion won and 30.9 billion won, respectively, in January.

After those top five, there were more bond funds that target bonds issued in Korea, dominating the public offering fund market, raising 10 to 20 billion won over the past month.

FnGuide data shows that domestic bond funds, including ETFs, have raised 995.1 billion won so far in January. During the same period, 246.7 billion won has flowed out of domestic equity funds.

Expanding the window to the top 20 products that have raised the most funds, domestic equity funds, foreign equity funds and dividend funds have also stood out.

Other products in the top 20 are Hanwha Smart++ Index Securities Feeder Investment Trust-Equity Fund and KB Target Return Growth OCIO Securities Investment Trust-Balanced Fund of Funds, raising 17.8 billion won and 16.1 billion won, respectively. Korea Investment U.S. Dividend Aristocrats Securities Feeder Investment Trust H and Baring High Dividend Plus Securities Investment Trust have also both placed within the top 20, raising 12.2 billion won and 11.2 billion won, respectively.

By Won Ho-sup and Chang Iou-chung

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