Shinhan Asset Management's Shinhan Best Credit Short-Term Fund Surpasses 400 Billion KRW in Assets Under Management

Shinhan Asset Management announced on the 3rd that the ‘Shinhan Best Credit Short-Term Fund (based on the master fund)’ has surpassed 400 billion KRW in assets under management. The fund, which was around 260 billion KRW last year, has shown growth of over 60% in just five months, driven by excellent performance.

According to the fund rating agency Zeroin, as of May 30, the ‘Shinhan Best Credit Short-Term Fund’ recorded a one-year return of 5.46%. This outperformed the average return of domestic short-term bond funds of the same type (4.26%) by 1.20 percentage points.

The ‘Shinhan Best Credit Short-Term Fund’ invests in undervalued credit bonds based on thorough corporate analysis, pursuing additional returns through a relative value strategy that sells overvalued securities and buys undervalued ones. It utilizes Shinhan Financial Group’s corporate credit analysis network to analyze bonds and reflects early predictions of risk signals in its management. Another strength of the fund is its active response to interest rate volatility by maintaining a short duration of around one year for the included bonds.

In particular, amid the high interest rate environment that has continued since last year, the market is shifting toward products that offer relatively high interest rates. Short-term bond products are attracting capital demand due to their low volatility and ability to secure high interest rates, especially as the timing of U.S. interest rate cuts is delayed and market volatility expands.

A Shinhan Asset Management official emphasized, “With the U.S. economy continuously showing strong performance, expectations for interest rate cuts have diminished, and with recent increases in interest rate volatility, risk management of bond assets is being emphasized. Short-term bond funds are the optimal investment destination in the current high interest rate environment as they manage volatility with short durations while securing high interest income.”

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