High Returns
The value-stock funds managed by four major Korean asset management companies – Samsung Asset Management, Mirae Asset Global Investments, Korea Investment Management, and KB Asset Management – accounted for 24.59 percent of the total value-stock funds in Korea as of June 8 to record a growth of 3.76 percentage points compared to the end of last year.
The balance of the Mirae Asset Value Stock Focus increased from 17.6 billion won (US$15.7 million) to 116.2 billion won (US$103.8 million) during the same period, while that of the Korea Investment Long-term Value skyrocketed from 18.9 billion won (US$16.9 million) to 113.8 billion won (US$101.9 million). Samsung Value Plus has attracted 89.8 billion won (US$80.4 million) since released in July last year.
These funds are enjoying relatively high returns, too. Specifically, the rate of return for this year amounts to 43.78 percent for the Mirae Asset Value Stock Focus A-class, 15.13 percent for the Samsung Value Plus A-class, and 13.75 percent for Korea Investment Long-term Value A-class.
Things were quite different until last year, when the value-stock funds of smaller companies outperformed those of the major ones. The latter used to focus more on growth stock funds, with the only exception being KB Asset Management, which released the KB Value Focus in 2009 in a bid to accelerate the growth of its value-stock fund business. However, larger companies turned their eyes toward value-stock funds as the Korean stock market drifted sideways and the domestic manufacturing sector remained in the doldrums.