All material presented in this report, unless specifically indicated otherwise, is under copyright to Samsung Securities. None of the material, nor its content, nor any copy of it, may be altered in any form or by any means, transmitted, copied, or distributed to any other party, without the prior express written permission of Samsung Securities. This memorandum is based upon information available to the public. While we have taken all reasonable care to ensure its reliability, we do not guarantee that it is accurate or complete. This memorandum is not intended to be an offer, or a solicitation of any offer, to buy or sell the securities mentioned herein. Samsung Securities shall not be liable whatsoever for any loss, direct or consequential, arising from any use of this memorandum or its contents. Statements, if any, relating to affiliates of Samsung Securities are also based upon information available to the public and do not necessarily represent the views of the management of such affiliates. This report has been prepared without any undue external influence or interference, and accurately reflects the personal views of the analyst(s) on the company(ies) herein. SAMSUNG MARKET STRATEGY Global turn to outflow North American and GEM funds see redemptions soar
Overseas fund flows (USDm)
1 week 4 week average Ytd GEM (658) 644 (11,753) Asia ex J apan (8) (265) (13,277) Latin America 55 127 (2,873) EMEA (97) (128) (1,751) EM subtotal (708) 379 (29,654) Global 2,010 1,416 22,580 Asia Pacific (32) 1,072 11,269 Western Europe 1,210 1,408 37,476 North America (11,744) (4,100) 4,642 DM subtotal (8,556) (205) 75,967 Total (9,264) 174 46,313 Note: As of May 7 Source: EPFR, Samsung Securities Domestic fund flows (KRWb)
1 week 4-week average Ytd Equity type 211 (90) (969) Domestic-invested 206 (76) (438) Overseas-invested 5 (15) (531) Mixed type 152 (1) 590 Equity (2) (26) 386 Bond 155 25 204 Bond (21) 157 128 MMF 1,580 (405) 5,450 Note: As of May 8 Source: KFIA, Samsung Securities Fund Flow Weekly DMs and EMs both turn to outflows: Funds worldwide turned to a net outflow (USD9.26b) for the first time in six weeks over May 1-7, with: 1) USD8.56b exiting developed markets [DMs] amid massive redemptions of North American funds, although other areas saw inflows continue; and 2) USD0.71b leaving emerging markets [EMs] amid increasing risk aversion and as GEM funds turned to a net outflow. ETFs comprised USD10b of USD11.47b in North American redemptions amid rising controversy over valuation peaks that had kept indices trading range-bound (thus eroding expectations of further upside). It augurs ill in the near term that P/Es of 15x since 2005 (eg, over late 2006-1H07 and in 2H09) caused massive outflows, but we nevertheless expect a return to net inflows in the medium term as earning stabilizesince stocks favored early this year (despite valuation burdens) are among those forecast to benefit from an accelerating economic recovery and corporate earnings growth. Among EMs, only Latin America enjoyed a net inflow, with the overall exit of funds led by GEM funds turning to a net outflow after five consecutive weeks of inflows (for the longest such streak since Mar 2013) as investors locked in profits on EMs that had recently outperformed DMs, but which now face persistent geopolitical risk and several political events (eg, general and presidential elections). Still, it is positive that emerging Asias net outflow has narrowed considerably in regional and country funds, despite massive outflows continuing in Greater China. Domestic-invested funds enjoy second week of inflows: Domestic-invested equity- type funds (excluding ETFs) attracted KRW210b over May 2-8 for a second week of net inflows, which we attribute to accumulation by retail investors finding valuations attractive after recent corrections. Foreigner investors selective in Asia: Foreign investors were at variance in Asian markets over May 5-9, net buying in India, Indonesia, and the Philippines, but net selling in Taiwan, Thailand, and Korea, with the latter fueled by the sharp appreciation of the won, which sent the Kospi tumbling. as their net selling offsets net buying by domestic institutional investors: Foreign investors net sold KRW595.3b over May 5-9 as domestic institutional investors net bought KRW147.5b, extending their respective runs for a second week as both groups net bought in the F&B sector on expectations of won strengthening leading to cost savings. Hwie Won Samuel Son hwiewon.son @samsung.com 822 2020 7842 Seung Min You (Chief Strategist) chartist.you@samsung.com 822 2020 7024
May 12, 2014 Fund Flow Weekly
2
Overseas fund flows Overseas fund flows (USDm) Net flows Assets Last week 4-week average YTD Last week YTD change Amount (% of AUM*) Amount (% of AUM*) Amount Amount Portion (%) Amount (in terms of %) GEM (658) (0.2) 644 0.1 (11,753) 442,176 6.6 (108) (0.0) Asia ex J apan (8) (0.0) (265) (0.1) (13,277) 294,512 4.4 (9,298) (3.1) Latin America 55 0.1 127 0.3 (2,873) 38,328 0.6 (1,007) (2.6) EMEA (97) (0.2) (128) (0.3) (1,751) 40,306 0.6 (3,323) (7.6) EMs: subtotal (A) (708) (0.1) 379 0.0 (29,654) 815,321 12.1 (13,736) (1.7) Global 2,010 0.2 1,416 0.1 22,580 1,320,949 19.6 122,776 10.2 Asia Pacific (32) (0.0) 1,072 0.4 11,269 256,716 3.8 5,423 2.2 Western Europe 1,210 0.1 1,408 0.1 37,476 980,445 14.5 140,714 16.8 North America (11,744) (0.3) (4,100) (0.1) 4,642 3,365,667 49.9 112,223 3.4 DMs: subtotal (B) (8,556) (0.1) (205) (0.0) 75,967 5,923,777 87.9 381,136 6.9 Total (A+B) (9,264) (0.1) 174 0.0 46,313 6,739,099 100.0 367,400 5.8 Note: * AUM at the beginning of the week; based on May 1-7 Source: EPFR, Samsung Securities
Cumulative net flows to major regional/country funds
Note: Based on past 52 weeks Source: EPFR, Samsung Securities
CONTENTS
Overseas fund flows p2 Foreign net flows into and out of Asia p4 Domestic fund flows p6 Weekly net flows and relative weightings by major investors in Korea p8
Appendix 1: Foreign ownership, by sector; net flows and relative weightings p10
Appendix 2: Domestic institutions' ownership, by sector; net flows and relative weightings p14
DMs turn to net outflows on significant North American redemptions; other regions maintain solid net inflows
EMs see sentiment deteriorate (100) (80) (60) (40) (20) 0 20 40 60 80 100 May 13 J ul 13 Sep 13 Nov 13 J an 14 Mar 14 Total EMs US J apan Western Europe (USDb) May 12, 2014 Fund Flow Weekly
3
Weekly net flows to DMs as % of AUM*, by region Weekly net flows to EMs as % of AUM*, by region
Note: * AUM at the beginning of each week; over past 4 weeks Source: EPFR, Samsung Securities Note: * AUM at the beginning of each week; over past 4 weeks Source: EPFR, Samsung Securities Net flows to major EM funds (USDm) Net flows
Assets Last week 4-week average YTD
Last week YTD change Amount As % of AUM* Amount As % of AUM* Amount
Amount AmountIn % terms Asia ex Japan China (269.9) (0.4) (120.6) (0.2) (2,519.2)
71,625 (7,160) (9.1) India 7.3 0.0 6.7 0.0 (652.1)
24,041 1,275 5.6 Korea 180.8 1.0 (75.9) (0.4) (2,002.3)
2,401 458 23.6 South Africa (14.4) (0.7) (8.9) (0.4) (152.8)
2,194 (6) (0.3) Note: * AUM at the beginning of the week; based on May 1-7 Source: EPFR, Samsung Securities
Weekly net flows to Korea-invested funds vs weekly foreign net buying on the Kospi
Source: EPFR, KRX, Samsung Securities Most country-specific funds see net outflows, but Korea turns to inflows while foreign investors remain net sellers in the nation (0.5) 0.0 0.5 1.0 1.5 2.0 Global Asia Pacific Western Europe North America (% of AUM) (1.0) (0.5) 0.0 0.5 1.0 1.5 GEM Asia ex J apan Latin America EMEA (% of AUM) (5,000) (4,000) (3,000) (2,000) (1,000) 0 1,000 2,000 3,000 4,000 5,000 (1,000) (800) (600) (400) (200) 0 200 400 600 800 1,000 May 13 J ul 13 Sep 13 Nov 13 J an 14 Mar 14 May 14 Net flows to Korea-invested funds (LHS) Foreign net buying (RHS) (USDm) (KRWb) May 12, 2014 Fund Flow Weekly
4
Foreign net flows into and out of Asia Foreign net flows into and out of Asia, by nation (USDm) Korea Japan Taiwan Thailand India Indonesia Philippines Weekl y net flows Last week (668) n/a (349) (73) 180 95 52 2 weeks ago (503) n/a 299 102 322 (83) 77 3 weeks ago 524 1,918 770 167 247 156 137 4 weeks ago 410 1,894 744 101 42 140 33 Cumulative net flows 1 month 560 2,990 1,912 387 967 186 331 3 months 1,591 (10,828) 7,497 674 5,780 2,777 990 6 months (2,039) 22,075 6,291 (2,668) 8,992 2,373 607 Yearl y net flows 2014 (700) (21,225) 5,469 (158) 5,582 2,997 825 2013 4,862 154,550 9,184 (6,208) 19,986 (1,808) 630 2012 15,069 27,733 5,039 2,504 25,187 1,703 2,548 2011 (8,584) (331) (9,074) (167) (575) 2,950 1,329 2010 19,800 22,926 9,595 2,687 29,618 2,331 1,229 Note: Based on May 5-9 Source: Bloomberg, Samsung Securities
Korea: Cumulative foreign net flows vs the Kospi
Note: Based on past three years Source: Bloomberg, Samsung Securities
CONTENTS
Overseas fund flows p2 Foreign net flows into and out of Asia p4 Domestic fund flows p6 Weekly net flows and relative weightings by major investors in Korea p8
Appendix 1: Foreign ownership, by sector; net flows and relative weightings p10
Appendix 2: Domestic institutions' ownership, by sector; net flows and relative weightings p14
Foreign investors exhibit mixed preferences in most major Asian markets 80 85 90 95 100 105 (15) (10) (5) 0 5 10 15 May 11 Nov 11 May 12 Nov 12 May 13 Nov 13 May 14 Cumulative net flows (RHS) Kospi (LHS) (Indexed) (USDb) May 12, 2014 Fund Flow Weekly
5
Japan: Cumulative foreign net flows vs Nikkei 225 Taiwan: Cumulative foreign net flows vs TWSE
Thailand: Cumulative foreign net flows vs SET India: Cumulative foreign net flows vs BSE Sensex 30
Indonesia: Cumulative net flows vs JCI Philippines: Cumulative net flows vs PSEI
Note: Based on past three years Source: Bloomberg, Samsung Securities Note: Based on past three years Source: Bloomberg, Samsung Securities
70 90 110 130 150 170 190 (100) (50) 0 50 100 150 200 May 11 Nov 11 May 12 Nov 12 May 13 Nov 13 May 14 Cumulative net flows (RHS) Nikkei225 (LHS) (Indexed) (USDb) 75 80 85 90 95 100 105 (20) (15) (10) (5) 0 5 10 May 11 Nov 11 May 12 Nov 12 May 13 Nov 13 May 14 Cumulative net flows (RHS) TWSE (LHS) (Indexed) (USDb) 85 95 105 115 125 135 145 155 165 (7) (6) (5) (4) (3) (2) (1) 0 1 2 3 May 11 Nov 11 May 12 Nov 12 May 13 Nov 13 May 14 Cumulative net flows (RHS) SET (LHS) (Indexed) (USDb) 75 85 95 105 115 125 135 (10) 0 10 20 30 40 50 60 May 11 Nov 11 May 12 Nov 12 May 13 Nov 13 May 14 Cumulative net flows (RHS) BSE Sensex 30 (LHS) (Indexed) (USDb) 90 95 100 105 110 115 120 125 130 135 140 (1) 0 1 2 3 4 5 6 May 11 Nov 11 May 12 Nov 12 May 13 Nov 13 May 14 Cumulative net flows (RHS) J CI (LHS) (Indexed) (USDb) 90 100 110 120 130 140 150 160 170 180 0 1 2 3 4 5 6 May 11 Nov 11 May 12 Nov 12 May 13 Nov 13 May 14 Cumulative net flows (RHS) PSEI (LHS) (Indexed) (USDb) May 12, 2014 Fund Flow Weekly
6
Domestic fund flows Domestic fund flows (KRWb) Net flows Assets Last week 4-week average YTD Last week YTD change Amount As % of AUM* Amount As % of AUM* Amount Amount Portion (%) Amount In % terms Equity-type 211 0.3 (90) (0.1) (969) 74,320 31.1 (5,736) (7.2) Domestic-invested 206 0.3 (76) (0.1) (438) 59,075 24.8 (4,228) (6.7) Overseas-invested 5 0.0 (15) (0.1) (531) 15,245 6.4 (1,508) (9.0) Mixed-type 152 0.5 (1) (0.0) 590 33,505 14.0 746 2.3 Equity (2) (0.0) (26) (0.2) 386 10,236 4.3 414 4.2 Bond 155 0.7 25 0.1 204 23,268 9.7 332 1.4 Bond-type (21) (0.0) 157 0.3 128 57,646 24.2 1,531 2.7 MMF 1,580 2.2 (405) (0.5) 5,450 73,205 30.7 6,115 9.1 Total BCs 1,923 0.8 (339) (0.1) 5,198 238,675 100.0 2,655 1.1 Note: * AUM at the beginning of the week; excludes ETFs; based on May 2-8 Source: KFIA, Samsung Securities
Weekly net flows to domestic-invested equity funds* vs net buying by local institutions**
Note: * Excludes ETFs; ** excludes program arbitrage; based on past 52 weeks Source: KFIA, KRX, Samsung Securities
CONTENTS
Overseas fund flows p2 Foreign net flows into and out of Asia p4 Domestic fund flows p6 Weekly net flows and relative weightings by major investors in Korea p8
Appendix 1: Foreign ownership, by sector; net flows and relative weightings p10
Appendix 2: Domestic institutions' ownership, by sector; net flows and relative weightings p14
Domestic-invested equity funds enjoy another weekly net inflow as domestic institutions net buy (excluding program arbitrage) (3,000) (2,500) (2,000) (1,500) (1,000) (500) 0 500 1,000 1,500 2,000 (1,500) (1,000) (500) 0 500 1,000 May 13 J ul 13 Sep 13 Nov 13 J an 14 Mar 14 May 14 Net flows to domestic-invested equity funds (LHS) Real net buying by local institutions (RHS) (KRWb) (KRWb) May 12, 2014 Fund Flow Weekly
7
Weekly net flows to domestic-invested equity funds* vs the Kospi
Note: * Excludes ETFs; based on past 52 weeks Source: KFIA, KRX, Samsung Securities
Net flows to domestic-invested equity funds: ETFs vs non-ETFs
Note: Based on past 52 weeks Source: KFIA, Samsung Securities
net buying ETFs and non-ETFs Investors bargain hunt as Kospi falls 1,800 1,850 1,900 1,950 2,000 2,050 2,100 (1,500) (1,000) (500) 0 500 1,000 May 13 J ul 13 Sep 13 Nov 13 J an 14 Mar 14 May 14 Net flows to domestic-invested equity funds (LHS) Kospi (RHS) (KRWb) (axis-inverted, pts) (1,500) (1,000) (500) 0 500 1,000 1,500 May 13 J ul 13 Sep 13 Nov 13 Dec 13 Feb 14 Apr 14 ETFs non-ETFs (KRWb) May 12, 2014 Fund Flow Weekly
8
Weekly net flows and relative weightings
Foreign investor weekly net flows vs relative weightings
Note: Based on May 5-9 * Based on free-float market capitalization Source: WiseFn, Samsung Securities estimates
Domestic institutional weekly net flows vs relative weightings
Note: Based on May 5-9 *Based on free-float market capitalization Source: WiseFn, Samsung Securities estimates
Foreign investors net sell KRW595b on the Kospi, mainly in the software and autos sectors CONTENTS
Overseas fund flows p2 Foreign net flows into and out of Asia p4 Domestic fund flows p6 Weekly net flows and relative weightings by major investors in Korea p8
Appendix 1: Foreign ownership, by sector; net flows and relative weightings p10
Appendix 2: Domestic institutions' ownership, by sector; net flows and relative weightings p14
as domestic institutional investors net buy KRW147b (0.4) (0.2) 0.0 0.2 0.4 0.6 0.8 1.0 (250) (200) (150) (100) (50) 0 50 100 150 S o f t w a r e A u t o s C h e m i c a l s S h i p b u i l d i n g S e m i c o n d u c t o r s T r a n s p o r t a t i o n E n e r g y I T
h a r d w a r e E l e c t r o n i c s M a c h i n e r y C o n s t r u c t i o n B a n k i n g D i s p l a y s P h a r m a c e u t i c a l s T e l e c o m S e c u r i t i e s S t e e l R e t a i l F o o d
&
b e v e r a g e I n s u r a n c e U t i l i t i e s Weekly net flows (LHS) Weighting relative to 52-week average (RHS)* (KRWb) (%pts) (1.0) (0.8) (0.6) (0.4) (0.2) 0.0 0.2 0.4 0.6 0.8 1.0 (100) 0 100 200 E n e r g y U t i l i t i e s M a c h i n e r y I n s u r a n c e C h e m i c a l s C o n s t r u c t i o n R e t a i l S e c u r i t i e s S t e e l P h a r m a c e u t i c a l s T r a n s p o r t a t i o n E l e c t r o n i c s T e l e c o m B a n k i n g D i s p l a y s I T
h a r d w a r e F o o d
&
b e v e r a g e S h i p b u i l d i n g S e m i c o n d u c t o r s S o f t w a r e A u t o s Weekly net flows (LHS) Weighting relative to 52-week average (RHS)* (KRWb) (%pts) May 12, 2014 Fund Flow Weekly
9
MSCI Korea: Top-10 stocks net bought in last week (in terms of amount), by investor type Code Name Market cap Weekl y net buying Code Name Market cap Weekl y net buying Amount (% of mkt cap) Amount (% of mkt cap) Foreign Local institution A015760 Kepco 26,545 84.4 0.3 A005380 Hyundai Motor 50,994 60.6 0.1 A000810 Samsung Fire & Marine 12,365 43.2 0.3 A035420 Naver 22,777 47.7 0.2 A000660 SK Hynix 29,225 34.1 0.1 A011210 Hyundai Wia 4,503 34.0 0.8 A033780 KT&G 12,068 17.5 0.1 A034730 SK C&C 7,675 30.0 0.4 A001800 Orion 4,959 10.3 0.2 A005930 Samsung Electronics 196,645 24.1 0.0 A005490 Posco 26,766 9.1 0.0 A097950 CJ CheilJ edang 4,205 22.9 0.5 A023530 Lotte Shopping 10,014 7.7 0.1 A000830 Samsung C&T 10,388 22.8 0.2 A055550 Shinhan Financial Group 21,671 7.6 0.0 A017670 SK Telecom 17,804 19.9 0.1 A030200 KT 8,421 7.1 0.1 A086790 Hana Financial Group 10,494 17.0 0.2 A138930 BS Financial Group 3,017 6.8 0.2 A161390 Hankook Tire 7,210 16.8 0.2 MSCI Korea: Top-10 stocks net bought in last week (in terms of % of market cap), by investor type Code Name Market cap Weekl y net buying Code Name Market cap Weekl y net buying Amount (% of mkt cap) Amount (% of mkt cap) Foreign Local institution A000810 Samsung Fire & Marine 12,365 43.2 0.3 A011210 Hyundai Wia 4,503 34.0 0.8 A015760 Kepco 26,545 84.4 0.3 A097950 CJ CheilJ edang 4,205 22.9 0.5 A006360 GS E&C 1,818 5.0 0.3 A009830 Hanwha Chemical 2,818 12.9 0.5 A000080 Hite J inro 1,704 4.3 0.3 A010620 Hyundai Mipo Dockyard 2,920 12.8 0.4 A138930 BS Financial Group 3,017 6.8 0.2 A034730 SK C&C 7,675 30.0 0.4 A001800 Orion 4,959 10.3 0.2 A012450 Samsung Techwin 3,129 8.6 0.3 A028050 Samsung Engineering 3,064 5.2 0.2 A009150 Samsung Electro-Mechanics 4,990 12.6 0.3 A003490 Korean Air 1,936 3.2 0.2 A042660 DSME 5,608 13.7 0.2 A012630 Hyundai Development Co 2,220 3.3 0.1 A161390 Hankook Tire 7,210 16.8 0.2 A033780 KT&G 12,068 17.5 0.1 A051900 LG Household & Health Care 7,317 16.2 0.2 Kospi 200: Top-10 stocks net bought in last week (in terms of amount), by investor type Code Name Market cap Weekl y net buying Code Name Market cap Weekl y net buying Amount (% of mkt cap) Amount (% of mkt cap) Foreign Local institution A015760 Kepco 26,545 84.4 0.3 A005380 Hyundai Motor 50,994 60.6 0.1 A000810 Samsung Fire & Marine 12,365 43.2 0.3 A035420 Naver 22,777 47.7 0.2 A000660 SK Hynix 29,225 34.1 0.1 A011210 Hyundai Wia 4,503 34.0 0.8 A033780 KT&G 12,068 17.5 0.1 A034730 SK C&C 7,675 30.0 0.4 A001800 Orion 4,959 10.3 0.2 A005930 Samsung Electronics 196,645 24.1 0.0 A005490 Posco 26,766 9.1 0.0 A097950 CJ CheilJ edang 4,205 22.9 0.5 A023530 Lotte Shopping 10,014 7.7 0.1 A000830 Samsung C&T 10,388 22.8 0.2 A055550 Shinhan Financial Group 21,671 7.6 0.0 A017670 SK Telecom 17,804 19.9 0.1 A030200 KT 8,421 7.1 0.1 A086790 Hana Financial Group 10,494 17.0 0.2 A002350 Nexen Tire 1,362 6.9 0.5 A051900 LG Household & Health Care 7,317 16.2 0.2 Kospi 200: Top 10 stocks net bought in last week (in terms of % of market cap), by investor type Code Name Market cap Weekl y net buying Code Name Market cap Weekl y net buying Amount (% of mkt cap) Amount (% of mkt cap) Foreign Local institution A001630 Chong Kun Dang Pharm 176 0.9 0.5 A097230 Hanjin Heavy Industries 877 6.6 0.8 A002350 Nexen Tire 1,362 6.9 0.5 A011210 Hyundai Wia 4,503 34.0 0.8 A000810 Samsung Fire & Marine 12,365 43.2 0.3 A044820 Cosmax BTI 188 1.1 0.6 A015760 Kepco 26,545 84.4 0.3 A097950 CJ CheilJ edang 4,205 22.9 0.5 A120110 Kolon Industries 1,699 5.2 0.3 A009830 Hanwha Chemical 2,818 12.9 0.5 A006360 GS E&C 1,818 5.0 0.3 A010620 Hyundai Mipo Dockyard 2,920 12.8 0.4 A007860 Hanilewha 773 2.0 0.3 A007690 Kukdo Chemical 304 1.3 0.4 A000080 Hite J inro 1,704 4.3 0.3 A008770 Hotel Shilla 3,360 13.4 0.4 A138930 BS Financial Group 3,017 6.8 0.2 A034730 SK C&C 7,675 30.0 0.4 A004370 Nong Shim 1,892 3.9 0.2 A004150 Hansol Paper 484 1.7 0.3 Note: Based on May 5-9 Source: KRX, Samsung Securities May 12, 2014 Fund Flow Weekly
10
Appendix 1: Foreign ownership, by sector; net flows and relative weightings 1
Energy: Cumulative net flows and relative weighting Chemicals: Cumulative net flows and relative weighting
Steel: Cumulative net flows and relative weighting Shipbuilding: Cumulative net flows and relative weighting
1 Sector weightings in portfolios under foreign ownership compared with Kospi weightings CONTENTS
Overseas fund flows p2 Foreign net flows into and out of Asia p4 Domestic fund flows p6 Weekly net flows and relative weights by major investors in Korea p8
Appendix 1: Foreign ownership, by sector; net flows and relative weightings p10
Appendix 2: Domestic institutions' ownership, by sector; net flows and relative weightings p14
0.0 0.1 0.2 0.3 0.4 0.5 0.6 (900) (800) (700) (600) (500) (400) (300) (200) (100) 0 100 May 13 Aug 13 Nov 13 Feb 14 May 14 Cumulative net flows (LHS) Relative weighting (RHS) (KRWb) (%pts) (1.9) (1.8) (1.7) (1.6) (1.5) (400) (200) 0 200 400 600 800 1,000 1,200 May 13 Aug 13 Nov 13 Feb 14 May 14 Cumulative net flows (LHS) Relative weighting (RHS) (KRWb) (%pts) (0.6) (0.5) (0.4) (0.3) (0.2) (0.1) 0.0 (200) 0 200 400 600 800 1,000 1,200 May 13 Aug 13 Nov 13 Feb 14 May 14 Cumulative net flows (LHS) Relative weighting (RHS) (KRWb) (%pts) (1.6) (1.5) (1.4) (1.3) (1.2) (1.1) (400) (200) 0 200 400 600 800 1,000 May 13 Aug 13 Nov 13 Feb 14 May 14 Cumulative net flows (LHS) Relative weighting (RHS) (KRWb) (%pts) May 12, 2014 Fund Flow Weekly
11
Construction: Cumulative net flows and relative weighting Transportation: Cumulative net flows and relative weighting
Machinery: Cumulative net flows and relative weighting Autos: Cumulative net flows and relative weighting
Retail: Cumulative net flows and relative weighting F&B: Cumulative net flows and relative weighting
2 Sector weightings in portfolios held by domestic institutions are compared with Kospi weightings CONTENTS
Overseas fund flows p2 Foreign net flows into and out of Asia p4 Domestic fund flows p6 Weekly net flows and relative weights by major investors in Korea p8
Appendix 1: Foreign ownership, by sector; net flows and relative weightings p10
Appendix 2: Domestic institutions' ownership, by sector; net flows and relative weightings p14
(0.5) (0.4) (0.3) (0.2) (100) 0 100 200 300 400 500 600 May 13 Aug 13 Nov 13 Feb 14 May 14 Cumulative net flows (LHS) Relative weighting (RHS) (KRWb) (%pts) (0.2) (0.1) 0.0 0.1 0.2 0.3 0.4 (100) 0 100 200 300 400 500 600 700 800 900 May 13 Aug 13 Nov 13 Feb 14 May 14 Cumulative net flows (LHS) Relative weighting (RHS) (KRWb) (%pts) (0.6) (0.5) (0.4) (0.3) (0.2) (0.1) 0.0 (700) (600) (500) (400) (300) (200) (100) 0 100 200 300 400 May 13 Aug 13 Nov 13 Feb 14 May 14 Cumulative net flows (LHS) Relative weighting (RHS) (KRWb) (%pts) 0.9 1.1 1.3 1.5 1.7 1.9 2.1 (1,000) (800) (600) (400) (200) 0 200 400 600 May 13 Aug 13 Nov 13 Feb 14 May 14 Cumulative net flows (LHS) Relative weighting (RHS) (KRWb) (%pts) May 12, 2014 Fund Flow Weekly
15
Construction: Cumulative net flows and relative weighting Transportation: Cumulative net flows and relative weighting
Machinery: Cumulative net flows and relative weighting Auto: Cumulative net flows and relative weighting
Retail: Cumulative net flows and relative weighting F&B: Cumulative net flows and relative weighting
(0.5) (0.4) (0.3) (0.2) (0.1) 0.0 0.1 0.2 0.3 (700) (600) (500) (400) (300) (200) (100) 0 100 200 300 May 13 Aug 13 Nov 13 Feb 14 May 14 Cumulative net flows (LHS) Relative weighting (RHS) (%pts) (KRWb) (0.2) (0.1) 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 (500) (400) (300) (200) (100) 0 100 200 300 400 May 13 Aug 13 Nov 13 Feb 14 May 14 Cumulative net flows (LHS) Relative weighting (RHS) (KRWb) (%pts) 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 (600) (500) (400) (300) (200) (100) 0 100 May 13 Aug 13 Nov 13 Feb 14 May 14 Cumulative net flows (LHS) Relative weighting (RHS) (KRWb) (%pts) (0.5) (0.4) (0.3) (0.2) (0.1) 0.0 0.1 (1,000) (800) (600) (400) (200) 0 200 400 600 May 13 Aug 13 Nov 13 Feb 14 May 14 Cumulative net flows (LHS) Relative weighting (RHS) (KRWb) (%pts) 0.0 0.1 0.2 0.3 0.4 (400) (300) (200) (100) 0 100 200 300 400 500 600 May 13 Aug 13 Nov 13 Feb 14 May 14 Cumulative net flows (LHS) Relative weighting (RHS) (KRWb) (%pts) May 12, 2014 Fund Flow Weekly
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Global Disclosures & Disclaimers General This research report is for information purposes only. It is not and should not be construed as an offer or solicitation of an offer to purchase or sell any securities or other financial instruments or to participate in any trading strategy. This report does not provide individually tailored investment advice. This report does not take into account individual client circumstances, objectives, or needs and is not intended as recommendations of particular securities, financial instruments, or strategies to any particular client. The securities and other financial instruments discussed in this report may not be suitable for all investors. The recipient of this report must make its own independent decisions regarding any securities or financial instruments mentioned herein and investors should seek the advice of a financial adviser. 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