Sales of private equity funds fall for 11th straight monthSales of private equity funds to individuals have fallen for the 11th consecutive month, as consumer distrust grew following a series of mis-selling fiascos, industry data showed Sunday.
Sales of such funds to individuals stood at 20.7 trillion won ($17.2 billion) as of May, down 500 billion won from a year ago. It marked the lowest total sales since 20.8 trillion won that was posted at the end of July 2018, according to the data.
Experts said the figure is likely to tumble below the 20 trillion mark soon.
They attributed the fall to a series of derivatives-linked investment funds, through which a large number of retail investors suffered massive losses. First-tier banks and brokerage houses involved in the mis-selling fiasco came under fire for selling complicated derivatives-linked products tracking overseas indices.
The liquidity crisis of funds operated by Lime Asset Management, once the largest hedge fund in the country, also raised consumer alerts.
The company's suspension of withdrawals from the fund spooked investors, forcing them to scramble to withdraw their money.