One out of every three overseas equity funds has recorded a more than 50 per cent loss as emerging stock markets plunged due to the global credit turmoil, data released yesterday (October 19) showed.

Most of the losses were incurred by funds investing in the so-called BRICs (Brazil, Russia, India and China)--popular investment destinations for South Korean investors, according to Zeroin, a fund rating agency.

Some 36 per cent of 246 overseas funds suffered the loss of over half of their investment, while 90 per cent of them posted a more than 30 per cent loss, a Zeroin report showed.

The report was based on a survey of more than one-year overseas equity funds that have over 10 billion won (US$7.5 million) in assets.

One of the China funds managed by Mirae Asset sustained a 72.3 per cent loss, while one of the Russia funds by JP Morgan Asset Management posted a 65.71 per cent loss.

"BRICs funds that account for a large portion of investments are leading to the deterioration of profits of overseas funds. It is hard to expect a recovery for the time being," said Lee Soo-jin, an analyst at Zeroin.

Korean retail investors rushed into BRICs funds, betting that emerging markets are relatively immune to the US-led financial turbulence. However, the financial crisis has spilled over to emerging countries, hammering their shares.

Domestic equity funds fared better than their overseas peers.

Among 301 domestic funds, not a single fund posted a more than 50 per cent loss, although 86 per cent of them suffered a loss of more than 30 per cent.

The worst-performing domestic equity fund was the one managed by Woori Credit Suisse Asset Management, which posted a 48.5 per cent loss.