Shinhan Asset Management's 'Dollar Short-Term Fund' Surpasses $200 Million in Net Assets

Shinhan Asset Management announced on the 18th that the ‘Shinhan Dollar Short-Term Fund (USD)’ has surpassed $200 million (approximately 270 billion KRW) in assets under management.

According to fund evaluator Zeroin, the ‘Shinhan Dollar Short-Term Fund (USD)’ has recorded an annualized return of 6.15% since its inception. During the same period, it significantly outperformed competing products such as foreign currency MMFs (5.27%), foreign currency time deposits (4.85%), and dollar RPs (4.45%).

Due to its strong product competitiveness, the ‘Shinhan Dollar Short-Term Fund (USD)’ has attracted demand not only from individuals but also from corporations and institutional investors holding large amounts of dollars, recording net inflows exceeding 220 billion KRW this year alone. Since surpassing $100 million in assets in February this year, it has more than doubled in just four months. This growth trend differentiates it from foreign currency MMFs, which have recently stagnated around the mid-$700 million range.

The ‘Shinhan Dollar Short-Term Fund (USD)’ invests in U.S. Treasury bills, considered the safest assets, as well as U.S. dollar (USD)-denominated bonds (KP bonds). It also includes some high-quality domestic bonds and employs a strategy of spot selling and forward buying combined with a short duration strategy within six months to pursue stable additional returns. Compared to foreign currency MMFs, this relatively flexible strategy aims for a similar level of volatility while achieving higher performance.

Unlike foreign currency MMFs, which are only available to corporations, the ‘Shinhan Dollar Short-Term Fund (USD)’ is open to individual investors as well. It offers the same redemption frequency as foreign currency MMFs, providing convenience for investors. Additionally, unlike foreign currency time deposits that require investment for a fixed period, it allows redemptions at any time without redemption fees, making it a suitable product for managing short-term dollar funds.

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