이 누리집은 대한민국 공식 전자정부 누리집입니다.

한상넷

비즈니스 정보

Biz News Korea(Eng)

Korean bond funds lose investors as they migrate to stock-related investments

Collected: 2016.12.10

Distributed: 2016.12.12

Source: Go Direct

Fund investors are shunning the bond market and turning to equities after the market yields have jumped on expectations for higher U.S. interest rates and rejuvenated U.S. economy benefiting from ambitious fiscal stimulus package under incoming Donald Trump administration.

According to market data provider FnGuide Thursday, as much as 1.48 trillion won ($1.27 billion) has been pulled out of local bond-linked securities over the last month. The stock exchange-traded funds drew around that much, or 1.40 trillion won, during the same period, suggesting the outflows from bond funds have been parked in equity counterparts.

KOSPI (Korea Composite Stock Price Index) 200 Index ETF gained 726 billion won, while KOSPI 200 Leverage ETF added 689.9 billion won over the past month. ETFs are considered as relatively cheap, short-term investment tool by both institutional and individual investors, especially amid political uncertainty.

Funds pulled out of bond-linked products for the first time last month this year as they lost appeal versus the dollar counterparts that guarantee greater returns backed by strong currency.

By Choi Jae-won

Read in Korean

List

Previous: S. Korean pres Park pronounced politically dead after impeachment motion passes

Next: Hyundai Merchant Marine likely to join 2M alliance on limited terms