Half of foreign asset managers lose money in H1

Nearly half of foreign asset managers operating in South Korea reported a loss in the first half of fiscal 2012, mostly due to the volatile market, industry data showed Friday.

According to the data by the Korea Financial Investment Association and the Financial Supervisory Service, 11 out of 23 foreign asset managers, or 47 percent, are estimated to have suffered a shortfall in the April-September period.

Foreign asset managers posted a combined net profit of 19.2 billion won ($17.6 million) in the first quarter, plunging 73.7 percent from three months earlier, the data showed. The firms close their books on March 31.

The poor business results of foreign asset managers operating in the country are attributed to the stagnant performances of blue chip shares on the local stock market, which account for the majority of their portfolios.

“While major South Korean players deal with the volatile market condition with diverse financial instruments, foreign firms hold less flexibility as they lack variety in funds and shares,” an industry insider said.

DWS Investments Korea, an asset management arm of Deutsche Bank AG, lost 3.8 billion won over the cited period, the biggest loss tallied among 82 asset managers in the country. (Yonhap News)