Shinhan Asset Management Launches Premium Bond Investment Maturity Fund No. 4

Shinhan Asset Management announced on the 9th that it will launch the ‘Shinhan Maturity Investment Type Securities Investment Trust No. 4 [Bond]’ fund, which invests in high-quality domestic bonds.

The maturity is 1.5 years, and the fund will be managed until November 2024. It pursues stable interest income through diversified investment in bonds rated A0 or higher, making it suitable for conservative investors who seek higher returns compared to bank deposit products or find bond trading burdensome.

The Shinhan Maturity Investment Type No. 4 [Bond] minimizes loss risk. The fund matches the maturity of the fund and the bonds included to approximately 1.5 years to minimize the possibility of bond losses due to interest rate fluctuations. If held until maturity, it can yield higher returns than fixed-rate products such as bank deposits regardless of market interest rate changes.

Incorporating the accumulated know-how and research process of Shinhan Asset Management, which manages over 70 trillion KRW in bond-related assets, the Shinhan Maturity Investment Type No. 4 [Bond] diversifies investments in bonds rated A0 or higher and secures stability by investing more than 50% of the fund’s net assets in AA0-rated bonds and liquid assets.

According to KIS Asset Evaluation’s disclosure as of May 7, the interest rate on A0-rated 1.5-year bonds is 4.71%, and AA0-rated bonds are at 3.91%. Furthermore, there has been not a single default case among domestic companies rated A or higher in the past 10 years, indicating a low risk of default for these bonds with excellent credit status.

Kim Kyung-il, Head of WM Pension Channel at Shinhan Asset Management, said, “The current market interest rate may be the highest level we will see for some time,” and added, “We recommend the maturity investment type fund, which can expect returns exceeding deposit interest rates at the final stage of the interest rate hike, to customers managing pension assets mainly in cash and deposit products.”

The Shinhan Maturity Investment Type Securities Investment Trust No. 4 [Bond] will be available for subscription until May 17 at Gwangju Bank, Mirae Asset Securities, Samsung Securities, Samsung Life Insurance, Shinhan Bank, Woori Bank, Hana Bank, JB Jeonbuk Bank, KB Securities, and others.

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