South Korean funds flowing into Brazilian stocks and resources have seen stellar returns this year, according to a fund evaluation on Oct. 21.
According to Zeroin, this year’s cumulative return of local Brazil-related investment funds with net assets of 1 billion won (US$890,000) or more stood at a whopping 60.5 percent as of Oct. 18, far outshining other overseas funds.
Overseas equity funds came next with a cumulative yield of 36.7 percent, trailed by funds investing in stocks of emerging South American economies with 34.3 percent.
The outstanding performance of the Brazil-oriented funds was attributed to a combination of rising commodity prices, a surge in Brazil’s benchmark stock index and Brazil’s efforts to revive its struggling economy.
Spot prices of West Texas Intermediate crude have soared 24.1 percent this year, with gold prices jumping 20.1 percent and Brazil’s key stock index spiking 47.1 percent, according to Zeroin.