'Shinhan Dollar Short-Term Money Fund' Surpasses $100 Million in Assets Under Management Just 4 Months After Launch

Shinhan Asset Management announced on the 13th that the ‘Shinhan Dollar Short-Term Fund (USD)’ has surpassed a set amount of 100 million dollars (approximately 132.9 billion KRW). The active demand for managing dollar assets and the fund’s superior performance compared to competing products are cited as reasons for accumulating 100 million dollars in a short period.

The ‘Shinhan Dollar Short-Term Fund’ is available to individual investors and allows flexible deposits and withdrawals at any time without redemption fees. It also shares the same redemption schedule as foreign currency MMFs. Through a relatively more flexible strategy compared to foreign currency MMFs, it aims for a similar level of volatility while pursuing higher returns. Due to this product competitiveness, demand has recently surged not only from individuals but also from corporations.

The dollar-denominated MMF, first launched last year, offers higher interest rates than dollar time deposits and allows redemptions at any desired time without a fixed maturity, growing to a scale of 700 billion KRW within six months. However, this product was only available to corporations, which was disappointing for individuals wishing to invest in dollars. The ‘Shinhan Dollar Short-Term Fund (USD)’ is regarded as a product that can satisfy these investors’ needs.

According to fund evaluator Zeroin, as of the 31st of last month, the ‘Shinhan Dollar Short-Term Fund’ recorded an annualized one-year return of 6.03% since its inception. This is relatively higher than competing dollar short-term investment products such as foreign currency MMFs (5.23%), commercial bank foreign currency time deposits (4.58%), and dollar RP (4.84%).

The difference in performance stems from its unique management strategy. It invests not only in dollar assets such as U.S. Treasury bonds and dollar-denominated Korean bonds but also employs various investment strategies tailored to market conditions, including earning swap margins through spot dollar sales and forward dollar purchases. At the same time, considering the characteristics of short-term funds, it pursues stable returns with a short duration (bond maturity) strategy within six months.

Kang Pan-seok, a manager at Shinhan Asset Management, explained, “Given the current inversion of short- and long-term U.S. interest rates, investing in dollar short-term funds is considered attractive.” He added, “Compared to foreign currency MMFs, the Shinhan Dollar Short-Term Fund (USD) aims for a similar level of volatility but pursues higher returns through flexible strategies aligned with domestic and international economic conditions. It should be actively utilized as a short-term investment destination.”

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