Seoul - Yonhap
Total earnings by asset management firms in South Korea declined 8.3 percent in the first quarter of 2011 from a year earlier on money flight from mutual funds, the financial watchdog said Thursday. The combined net profits of 81 local and foreign asset managers came to 99.5 billion won (US$84.3 million) in the April-June period, compared with 108.5 billion won the previous year, according to the Financial Supervisory Service (FSS). The companies closed their books on March 31. The FSS said the balance of stock funds declined because the central bank\'s rate hike sparked money outflows from money market funds. A rise in popularity of other investment vehicles like wrap accounts contributed to a fall in net income. As of the end of June, total assets under management reached 299.1 trillion won, down 6.5 percent from a year ago.