Shinhan MAN Global High Yield Fund Surpasses 30 Billion KRW in Assets Under Management

Shinhan Asset Management announced on the 28th that the ‘Shinhan MAN Global High Yield Fund’ surpassed 30 billion KRW in assets under management just five months after its launch. It has shown continuous growth with steady capital inflows alongside excellent performance.

The fund recorded returns of 3.42% over three months and 4.68% year-to-date, ranking first among global high yield funds. It outperformed the average three-month return of 1.66% for funds of the same category.

The ‘Shinhan MAN Global High Yield Fund’ is a fund of funds investing in the UK-based Man High Yield Opportunity fund. It is a representative high yield fund of the MAN Group. The underlying fund, MAN GLG High Yield, has delivered an average annual return of 9.1% since its launch in 2019, showing more than twice the excess return compared to the global high yield index. The Yield to Worst (YTW), which calculates the minimum annualized return an investor can expect considering the possibility of early bond redemption?a common measure of high yield fund performance?was 10.4%, outperforming the benchmark.

The key to its excellent performance was attributed to a differentiated management strategy. While typical global high yield funds construct portfolios similar to the global high yield benchmark, the Shinhan MAN Global High Yield Fund’s biggest difference is selecting individual corporate securities through credit research rather than relying on an index-based approach.

It discovers and selects stocks with strong fundamentals and competitively priced valuations among sectors or companies that are relatively less known in the market.

Shinhan Asset Management launched the ‘Shinhan MAN Global High Yield Monthly Dividend Fund’ on April 23, 2024, employing the same management strategy to meet investors’ demand for monthly dividends.

This product, which offers both monthly dividends and capital gains, has attracted over 5 billion KRW in assets within one month of its launch. The upcoming first monthly dividend is expected to yield a dividend rate of around 7% on an annualized basis.

Park Jeong-ho, Fund Solutions Team Leader at Shinhan Asset Management, said, "The market expects the European Central Bank (ECB) to cut interest rates sooner than the US. Unlike high yield funds that hold the largest proportion in the US, the Shinhan MAN Global High Yield Fund is expected to benefit from earlier rate cuts by expanding its exposure to Europe and the UK."

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