Yujin Asset Management Launches Bond Fund Operated According to ESG Standards

Eugene Asset Management, a subsidiary of Eugene Investment & Securities, has launched the 'Eugene Champion Good ESG Bond Fund,' which incorporates ESG criteria into bond management. (Provided by Eugene Investment & Securities)

[Asia Economy Reporter Gong Byung-sun] A bond fund that allows investment in high-quality ESG (Environmental, Social, Governance) bonds to pursue mid- to long-term returns will be launched.

On the 15th, Eugene Asset Management, a subsidiary of Eugene Investment & Securities, announced the launch of the "Eugene Champion Good ESG Bond Fund," which incorporates ESG criteria into bond management.

This fund is a product that combines the research capabilities of Eugene Asset Management and external ESG rating agencies to identify and invest in companies leading in ESG. While investing in high-quality ESG bonds to pursue sustainable mid- to long-term returns, it will also focus on stability and liquidity by allocating a certain proportion to highly liquid assets such as government bonds and special bonds.

Eugene Asset Management decided to select a credit universe targeting companies with a credit rating of A- or higher. Among the selected stocks, bonds of companies with an ESG rating of B or higher given by the Korea Corporate Governance Service (KCGS) and bonds issued for ESG purposes are chosen. Then, Eugene Asset Management applies its own ESG scoring model to grade them. Eugene Asset Management stated, "We will build an integrated Eugene ESG universe only for stocks that receive an internal ESG rating of 'medium' or higher," adding, "Based on this, we will compose an optimal portfolio for investment."

This fund is a sub-fund investing in the Eugene Champion ESG Mid-term Bond Master Fund, which was established in 2018 and currently operates with assets worth 320 billion KRW. Reflecting the recent market trend emphasizing social responsibility, Eugene Asset Management renewed and relaunched the product.

Oh Chun-sik, Head of Marketing at Eugene Asset Management, said, "ESG investment has already become a basic guideline for investment rather than a trend in overseas markets, and it is actually leading to improved returns," adding, "We expect this product, reflecting such market changes, to grow into a representative fund leading ESG investment in the market."

This content was produced with the assistance of AI translation services.