South Korean funds drew 9 trillion won ($7.95 billion) in net inflows last month helped by increased demand for local bond and real estate funds.

The net asset value of local investment funds totaled 582.9 trillion won in late February, up 1.6 percent from the previous month, according to the Korea Financial Investment Association (KOFIA) on Wednesday.

Bond funds pulled in net inflows of 2.9 trillion won, or up 2.7 percent on month, to reach net assets of 108.6 trillion won in late February. Net assets of domestic bond funds gained 3.1 percent to 100.7 trillion won, while overseas bond funds fell 1.7 percent to 7.9 trillion won.

KOFIA said the fall in U.S. treasury yields helped drive investors to Korean bonds, lifting demand for domestic bond funds.

Stock funds drew 500 billion won in net inflows, or up 0.6 percent on month, to total 86.8 trillion won during the same period. Domestic stock funds lost 0.7 percent to total 65.1 trillion won, while overseas stock funds were up 4.5 percent at 21.7 trillion won.

Real estate funds saw a net inflow of 1.7 trillion won, or up 2.2 percent, to reach 79.8 trillion won in net assets. Money market funds lost 90 billion won, slipping 0.1 percent, for total net assets of 106 trillion won.

By Moon Il-ho and Kim Hyo-jin

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