Shinhan Asset Management Launches 'Greenflation Plus EMP Fund'

[Asia Economy Reporter Hwang Yoon-joo] Shinhan Asset Management has highlighted greenflation as a necessary investment destination for investors struggling to find places to invest during inflationary periods.

On the 4th, Shinhan Asset Management announced the launch of the 'Shinhan Greenflation Plus EMP Securities Investment Trust (H) [Mixed - Fund of Funds],' which captures investment opportunities arising from a new inflation phenomenon occurring on the path to a carbon-neutral society.

Greenflation (environmentally friendly + inflation) refers to the phenomenon where rising raw material prices during the transition to an eco-friendly economy lead to inflation. Unlike traditional inflation caused by monetary policy, demand, or costs, greenflation arises from environmental government regulations and policies such as carbon neutrality and changes in corporate eco-friendly business structures, and is expected to continue over the long term.

This fund was launched as an EMP fund. It constructs a portfolio through ETFs to respond to the market with the most efficient strategy. The fund classifies raw materials affected by major policies and regulations, such as copper, aluminum, and natural gas, and invests in products whose actual direction aligns with these trends.

It invests in stocks or ETFs of global infrastructure-related companies or ESG (Environmental, Social, and Governance) companies, as well as greenflation-related assets such as commodity ETFs and REITs, and bond-related assets such as TIPs and bond ETFs, with monthly rebalancing executed once a month based on the volatility of the S&P 500 index.

Shinhan Asset Management explained that this fund strategically responds to each inflation phase by considering long-term changes in inflation trends. For example, in the early phase of green inflation, it invests in carbon emission rights considering the demand from latecomers to carbon neutrality and in raw material products affected by policies and regulations. In the late phase of green inflation, when inflation declines after the green industry matures, it expands the proportion of ESG stocks to increase carbon-neutral investments. Shinhan Asset Management invested 3 billion KRW of proprietary funds to strategically nurture the Shinhan Greenflation Plus EMP Fund.

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