Shinhan Financial Investment Sells 'Shinhan Areumdaun SRI Green New Deal' Fund

[Asia Economy Reporter Minji Lee] Shinhan Financial Investment announced on the 18th that it will sell the ‘Shinhan BNPP Beautiful SRI Green New Deal Securities Investment Trust’ (hereinafter referred to as the ‘Shinhan Beautiful SRI Green New Deal’ fund), which invests in companies with a high level of corporate responsibility.

The Shinhan Beautiful SRI Green New Deal fund is characterized by reflecting ESG factors in investments to enhance risk-adjusted returns. Recognizing that investing in companies with low ESG standards can lead to various risks, it employs an investment approach that strengthens monitoring of non-financial risks and maximizes shareholder value.

Regarding environmental factors, it considers financial elements alongside non-financial elements such as environment, social responsibility, and governance to analyze the financial impact related to regulatory compliance costs, including Green New Deal beneficiaries and company-specific emission allowance purchase costs. For social factors, as the importance of intangible assets such as human resources and brand image increases, it reviews the foundation for sustainable management and reflects this in investment decisions. It also examines whether companies establish shareholder-friendly management policies, possess internal control systems and supervisory bodies, and maximize the utility of stakeholders in corporate activities.

This product invests approximately 70% of the total portfolio through an approach based on existing ESG evaluations. It invests 30% in portfolios selectively targeting various ESG-related issues and themes, aiming for excess returns by selectively investing in beneficiaries of government policies and environmental regulations.

The fund conducts research on investee companies by determining its own ESG rating through financial analysis and measurement of key ESG indicators in Shinhan Asset Management’s corporate analysis research, and receives advisory reports on various issues from external ESG advisory firms. The fund’s total expense ratio is 1.695% per annum.

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