Investment funds fall 1.6% on Turkey jitters

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Investment funds fall 1.6% on Turkey jitters

Net assets of Korea’s investment funds decreased in August amid concerns over financial instability in Turkey, data showed Tuesday.

The net assets of local investment funds inched down 1.6 percent on-month to 561.2 trillion won ($498.7 billion), according to the data compiled by the Korea Financial Investment Association (Kofia).

The fall is mainly attributable to a drop in the net of money market funds (MMFs), which tumbled 13.7 percent, or 17.4 trillion won, to stand at 109.5 trillion won, following a massive redemption by the Qatar National Bank in the aftermath of the financial turmoil in Turkey.

Early last month, Turkey’s lira nosedived, raising fears of its possible fallout.

Despite such developments, net assets of South Korea’s stock funds grew 1.3 percent from the previous month to come to 83.6 trillion won, and that of bond-type funds increased 1.7 percent to 103 trillion won, according to Kofia.

The total value for local investment funds’ products stood at 554.9 trillion won as of the end of August, down 1.8 percent on-month.

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