Back To Top

Overseas stock funds yield more than domestic ones in Nov.

South Korean funds for overseas stock investment posted higher returns than domestic-focused ones in November due to a sluggish equity market here, a market tracker said Thursday.

The average return of overseas stock funds with a net asset of 1 billion won ($930,000) or more came to 1.62 percent as of Tuesday, compared with a yield of 0.79 percent for domestic equity funds, according to KG Zeroin.

The figures mark a turnaround from their yields the previous month. Domestic stock investment funds posted returns of over 4 percent in October, while overseas equity funds yielded less than 3 percent.


Market watchers said domestic stock investment funds underperformed their overseas counterparts amid the main stock market's sluggishness.

"As the main stock market languished due to a recent controversy over the chip industry's future performance and other negative factors, domestic equity funds oriented toward large caps fared poorly," said Oh On-soo, a KB Securities analyst.

Morgan Stanley recently issued a report that the semiconductor industry has reached its peak, sending shares of chip manufacturers lower. The market's prolonged rally, which started at the beginning of the year, has also weighed on investor sentiment, according to the analyst.

Funds for investment in Vietnamese stocks chalked up a return of 10.13 percent this month, the highest among overseas equity funds.

Vietnam's benchmark stock index jumped more than 12 percent over the cited period, the biggest gain among major stock markets, while the Korea Composite Stock Price Index dropped 0.62 percent. (Yonhap)