Shinhan Asset Management's 'Shinhan MAN Global High Yield Fund' Surpasses 10 Billion KRW in Assets Under Management

Shinhan Asset Management announced on the 26th that the ‘Shinhan MAN Global High Yield Fund’ has surpassed 10.5 billion KRW within just three months of its launch. With steady capital inflows, the fund has increased by over 10 billion KRW in a short period, demonstrating continuous growth.

The secret to this growth is believed to be its excellent performance. The underlying fund, MAN GLG High Yield Fund, has consistently delivered outstanding results since its inception in 2019. Since its launch in 2019, it has recorded a return of 55.5% (an annual average of 9.0%), outperforming the global high yield index (23.5%, annual average 4.2%) by more than twice.

In February of this year, while the global high yield market rose by 0.35%, the underlying fund achieved a 1.25% return, outperforming the market by 0.9 percentage points.

The underlying fund is characterized by a differentiated management strategy. Unlike typical global high yield funds that track benchmark indices, it selects individual company stocks through credit research. It implements asset allocation strategies with very active and flexible approaches in regional and sector investments. Currently, the investment weight in the European market is higher than in the U.S. market, reflecting the relatively attractive high yield bond spreads in Europe compared to the U.S. market, which is expected to yield greater returns as the economy recovers.

Recently, with the increasing possibility of a Goldilocks scenario in the U.S. economy, inflation is expected to slow down and high yield spreads to narrow. In particular, an interest rate cut is anticipated this year, which is clearly a positive factor for the fund.

However, it is also true that risks related to U.S. commercial real estate and regional banks have not yet been resolved, which remains a concern in the bond market. In this regard, selective company selection is more important than ever when investing in global high yield. The fund’s strategy, which emphasizes stock selection, appears to be a very suitable investment option from a risk management perspective.

Park Jeong-ho, head of the Fund Solutions team, explained, “At this point, we believe the advantage of holding long-term bonds is low, so the fund’s duration is maintained lower than the benchmark index,” adding, “We will continue to expand the weight in Europe and the UK compared to the U.S. and focus on discovering stocks.”

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