Fidelity International Asset Management and AllianceBernstein Asset Management (AB) have seen the largest inflows in South Korea’s mutual fund market this year, with international equities leading, according to the latest report from Korea Fund Ratings.
Data for transactions up to December 18 shows that 13,467 mutual funds run by 53 asset managers in South Korea had net outflows of 24.99 trillion won ($22.7 billion) in the past year, with aggregate assets declining to 130.24 trillion won.
Only 14 asset managers have had net inflows, while the rest – including the three largest managers, Samsung Asset Management, Mirae Asset Global Investments and KB Asset Management – saw net outflows, reducing their assets under management. In contrast, 22 of the 52 managers had net inflows in the previous 12 months.
Fidelity International was a top performer in 2020, attracting a net inflow of 755.9 billion won, more than twice its net inflow in 2019. The inflow was largely driven by the asset manager’s international equity funds, which added 724.4 billion won.
In particular, Fidelity’s Global Technology fund has attracted a net inflow of 643 billion won in the year to date, with investors favoring global tech stocks amid Covid-19 market volatility. The fund had returned 34.88% through December 18.
AB has seen the second largest net inflow of 697.2 billion won, reversing its net outflow of 96.7 billion won in 2019. The inflow was also led by international equity funds, with the asset manager’s American Growth Portfolio fund attracting money from investors who want to invest in large U.S. caps. The fund had recorded a return of 27.24% as of December 18.
Asset One, Consus Asset Management and Midas Asset Management have seen net inflows of 282.6 billion won, 225.5 billion won and 180 billion won respectively since the start of the year. More than 40% of the Asset One inflow went to hybrid funds that invest in initial public offering (IPO) shares, along with other asset classes, in an IPO bonanza.
In rankings by fund type, Midas Asset Management has had the largest net inflow of 127.6 billion won for domestic equities, followed by Daishin Asset Management (26.5 billion won in net inflow), Hyundai Investments (3.1 billion won), Heungkuk Asset Management (3.1 billion won) and Ryukyung PSG Asset Management (3 billion won).
Among 38 asset managers that offer international equity fund products, 13 have seen net inflows, with Fidelity International (724.4 billion won in net inflow), AB (509.2 billion won) and Mirae Asset Global Investments (505.8 billion won) the top three.
Samsung Asset Management and AB have had the largest net inflows for domestic and international fixed income segments respectively, adding 661.8 billion won and 187.9 billion won. For the domestic and international hybrid segments, Asset One and Mirae Asset Global Investments have seen the largest increases in assets, attracting 282.6 billion won and 474 billion won in net inflows. (Reporting by Su-jeong Kim)