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THE INVESTOR
January 22, 2020
Big Reunion

Stocks & Bonds

S. Korean investors turn to overseas funds amid sluggish market

  • PUBLISHED :November 24, 2019 - 15:04
  • UPDATED :November 24, 2019 - 15:04
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South Korean investors have increased their investments in overseas funds in recent weeks, as they seek to escape from heightened stock volatility stemming from global trade issues, data showed Nov. 24.

According to the Korea Financial Investment Association, nearly 4,700 overseas funds created and managed by local entities have drawn a combined 177.4 trillion won ($150.4 billion) from investors so far, an increase of 2.5 trillion won from the end of last month.

The combined net worth of the funds also increased by 3.3 trillion won to 183.9 trillion won in the cited period. 

Yonhap


Of different types of oversea funds, special assets -- investments in nonsecurities including gold, crude oil, infrastructures and aircraft -- and real estate were the most popular investment options.

The special asset funds drew a combined 1.2 trillion won from investors this month, and the total asset value stood at 42.3 trillion won in the same period. Its combined net worth increased 1.3 trillion won in the cited period, marking it as the asset class that saw the most gains in nearly three weeks.

Meanwhile, offshore real estate funds drew a combined 893 billion won and its total net worth gained nearly 1 trillion won.

Overseas real estate funds have been replacing stocks as an attractive investment option for local investors due to their design guaranteeing steady income over a fixed period of time. The funds are usually tied to monthly rents paid by tenants.

By Jung Min-kyung/The Korea Herald (mkjung@heraldcorp.com)

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