Last Year Fund Net Assets 851.3 Trillion Won... 2.3% Increase from Previous Year

[Asia Economy Reporter Park So-yeon] Last year, the fund market's net assets under management (AUM) were recorded at 851 trillion KRW, showing a slight increase compared to the previous year. Although the net assets of securities-type funds shrank due to increased domestic and international economic uncertainties, all types except bond funds saw net inflows of capital.

According to the 'Last Year Fund Market Settlement' announced by the Korea Financial Investment Association on the 17th, the total fund net assets at the end of last year stood at 851.3 trillion KRW, up 2.3% (19.4 trillion KRW) from the end of the previous year. The amount of new subscriptions was 833.2 trillion KRW, increasing by 5.68% (44.8 trillion KRW) during the same period.

A representative from the Korea Financial Investment Association said, "Since the COVID-19 pandemic, global inflation has occurred, and major countries have continued their interest rate hike policies. This inflation shows characteristics of being countercyclical, leading to declines in stocks and bonds and a decrease in the net assets of securities-type funds. However, all types except bond funds experienced net capital inflows."

The net assets of public offering funds were 283.1 trillion KRW, down 9.3% (28.9 trillion KRW) from the end of the previous year. In contrast, private equity funds increased by 9.3% (48.3 trillion KRW) to 568.1 trillion KRW.

By type, securities-type funds were somewhat sluggish due to domestic and international economic uncertainties, but alternative investment funds and money market funds (MMF) continued their upward trend.

For equity funds, net assets were recorded at 91.4 trillion KRW, down 17.5% (19.4 trillion KRW) from the end of the previous year, reflecting the global stock market downturn.

Bond funds experienced a net outflow of 10.8 trillion KRW over the year due to interest rate hikes in major domestic and foreign countries. As bond prices fell, net assets closed at 115.7 trillion KRW, down 10.9% (14.1 trillion KRW) from the end of the previous year.

Short-term finance saw net inflows of 14 trillion KRW annually, driven by liquidity funds following financial market stabilization measures. Accordingly, total net assets increased by 12.8% (17.4 trillion KRW) from the end of the previous year to 153.3 trillion KRW.

Real estate and special assets net assets recorded 157.3 trillion KRW and 136.5 trillion KRW, respectively, due to institutional capital execution. These amounts represent increases of 17.4% and 14.5% compared to the end of the previous year.

This content was produced with the assistance of AI translation services.