Overseas Fund Investment
Korean asset management firms are showing high profit rates in the alternative energy and healthcare sectors abroad. They have made their investment in these fields since late last year.
According to fund information provider KG Zeroin, their equity funds investing in the healthcare and energy sectors recorded a profit rate of 13.11 percent and 5.77 percent between January 1 and March 7, 2014, respectively. The rate of return is even higher than the average earnings rate, 4.79 percent, of those investing in North America.
The healthcare funds’ earnings rates are amounting from 9 percent to 15 percent in the Korean market, too. For example, the Dongbu Bio Healthcare I Fund has gained 15.19 percent since the first day of this year. More than 50 percent of the fund is invested in the biotechnology and healthcare industries.
Foreign funds are distinguishing themselves particularly in the energy sector. The Alpha Asset Tomorrow Energy 1A Fund of Fund is currently topping the chart with a rate of return of 17.73 percent. The fund’s investment targets include wind, photovoltaic, bio-energy, geothermal, water power generation companies, and the like.
In the meantime, industry and securities market experts are providing mixed opinions as to the future growth forecasts of these sectors. “It cannot be denied that today’s US financial market is showing enough soundness,” said Fed president William Dudley, adding, “However, it is also true that there are some over-valuated sectors there, an example of which is biotech.” US biotech industry shares have gained 9.10 percent since the beginning of this year, which is the third-highest of all, but has also dropped 2.51 percent during the recent one week to plummet more than all of the other 68 industrial sectors.
“The IT and healthcare industries are showing a bullish movement nowadays, because investors are assuming extremely slow growth,” Daewoo Securities Research Analyst Park Seung-yeong explained, continuing, “If the lopsidedness is exacerbated this week, investors would be well advised to adjust their portfolios.”
Some experts are pretty positive about the alternative energy sector though. “Investment in photovoltaic power generation is creating a boom these days in the United States, Japan, and China, and this can be a nice opportunity for battery and energy storage system manufacturers and those investing in them,” said Park So-hyeon, researcher at Korea Investment & Securities.