Hyundai Asset Management Recommends Short-Term Bond Funds Resistant to Volatility in Fluctuating Markets

[Asia Economy Reporter Hwang Yoon-joo] Hyundai Asset Management recommended 'short-term bond funds' as short-term financial products to defend against market volatility.

Hyundai Asset Management announced on the 11th that interest in the 'Hyundai Trust Short-Term Bond Securities Fund [Bond],' which can expect slightly higher returns than MMFs, is increasing.

The Hyundai Trust Short-Term Bond Fund mainly invests in corporate bonds, commercial papers, and short-term bonds to pursue interest income. The fund manages its duration around 0.5 years and operates with a portfolio that invests more than 70% in commercial papers (CP) and asset-backed electronic short-term bonds (ABSTB), employing a strategy to manage risk and secure interest income.

According to the Korea Financial Investment Association, as of the end of last month, the MMF (Money Market Fund) assets under management amounted to approximately KRW 163.4 trillion, showing the highest increase rate in assets under management (21%) among all fund types compared to the end of last year. It is interpreted that standby funds looking for a temporary place amid stock market instability flowed into short-term financial products.

During the same period, Hyundai Asset Management's public MMF also saw favorable performance, attracting a net inflow of about KRW 2.4 trillion since the beginning of the year.

A Hyundai Asset Management official stated, "Both our MMF and short-term bond funds were able to maintain favorable returns by appropriately employing duration strategies in preparation for interest rate hikes around the end of the year," adding, "Based on various risk management experiences, we will focus on maximizing our ability to respond to market volatility and consistently deliver performance."

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