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Investment funds' influence on bourse wanes in 2017

All Headlines 09:08 March 09, 2018

SEOUL, March 9 (Yonhap) -- South Korean investment funds saw their influence on the bourse continue to drop over the past years to a 13-year low in 2017, industry data showed Friday.

Shares held by such funds accounted for 4.27 percent of the stock market capitalization as of the end of 2017, according to the data from the Korea Financial Investment Association. On a year-end basis, it was the lowest level since the 3.25 percent recorded in 2004.

Operated by asset management companies, investment funds refer to those that pool money from investors; put them in stocks, bonds and other investment vehicles; and return profits to clients.

With investment funds gaining popularity among investors, their share had been on the rise since 2004 before peaking at 9.63 percent at the end of 2008. The figure, however, has been on the skids since then in the wake of the global financial crisis.

The downtrend went hand in hand with a drop in the amount of money trusted with stock investment funds. The amount of assets managed by stock funds came to 78 trillion won (US$72.8 billion) as of the end of last year, compared with 140 trillion won in 2008.

Meanwhile, investment funds held bonds accounting for 9.21 percent of the total bonds listed as of end-2017, compared with 10.8 percent a year earlier.

Investment funds' influence on bourse wanes in 20170

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