[2020 Asia Fund Awards] Generating Returns through Dollar-Denominated Bond Investments in Emerging Countries

Shim Jong-guk, CEO of Samsung Asset Management

[Asia Economy Reporter Kum Boryeong] Samsung Asset Management's 'Samsung Nuveen Emerging Sovereign Plus Fund' was selected in the Best Fund Overseas Bond category.

This fund invests in dollar-denominated currency bonds issued by emerging countries, aiming for long-term capital gains and income returns. It is a fund of funds investing in Nuveen's fund, which diversifies across approximately 240 bonds from 66 emerging countries worldwide, including Argentina, Mexico, Indonesia, and Croatia.

It seeks stability by investing in dollar-denominated sovereign bonds with an annual yield of around 6%. It also includes some bonds denominated in Euro, Yen, and Pound. The fund is designed to invest in the growth potential of emerging markets without being shaken by exchange rate volatility.

The fund has shown favorable returns. As of the 29th of last month, the returns were 2.17% for 1 month, 3.14% for 3 months, 15.09% for 1 year, and 21.46% since inception. The assets under management also increased by about 30 billion KRW compared to the beginning of last year.

Nuveen, which manages the underlying fund of this product, was established in 1939 and manages approximately 306 trillion KRW in assets. Over the past 10 years, 87% of its equity assets and 78% of its bond assets under management have outperformed their benchmarks.

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