korean-funds-exodus-no-problem

Korean funds exodus? No problem

The mutual funds industry weathers the loss of $18 billion in one week from money-market funds.
Last week institutional investors redeemed W17 trillion $18 billion from South Korean money-market funds. Yet the industry shrugged off the event, in a sign of its improved health and maturity after years of dislocation.

Industry players had anticipated the move, if not its scale, as it stemmed from changes to regulations announced in advance by the Ministry of Finance and Economy. Most executives welcome the new rules, which move KoreaÆs industry closer to international norms.

First, in November, MoFE implemented legislation that allowed clients to redeem from money-market funds in one day. Before, institutions had to give a long notice period, and fund managers could sometimes impose further delays in a state of crisis....
¬ Haymarket Media Limited. All rights reserved.

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