Funds' net asset value spikes in August: data

SEOUL, Sept. 4 (Yonhap) - The net asset value of investment funds in South Korea soared in August from a month earlier as corporate investors betted on short-term funds, while stock funds suffered outflows, data showed Thursday.

According to the Korea Financial Investment Association (KOFIA), the net asset value of stocks, bonds and real estate-related funds reached a combined 362.4 trillion won (US$356 billion) at the end of August, up 6.2 trillion won from a month earlier.

The net asset value refers to the amount of funds received from contractors and the revenue recorded during the cited period.

The rise was driven by short-term funds such as money market funds (MMFs).

Money market funds posted a net inflow of 5.8 trillion won last month, boosting their net asset value to 86.6 trillion won from 80.87 trillion won the previous month, the data showed.

Money market funds are mostly invested in short-dated bonds, commercial papers and certificates of deposit.

Net asset value of funds investing in bonds rose 700 billion won last month to 64 trillion won, according to the data.

In contrast, stock funds saw their net asset value slip last month to 74.6 trillion won, as local stock funds suffered an outflow of 100 billion won on redemption. The net asset value of foreign stock funds also shed 300 billion won to 15.4 trillion won, the data showed.

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