Shinhan Short-Term Bond Fund Surpasses 800 Billion KRW in Assets Under Management Just 3 Months After Launch

Shinhan Asset Management announced on the 27th that the 'Shinhan Ultra-Short-Term Bond Fund' has surpassed 800 billion KRW in assets under management.

It reached 811.3 billion KRW just three months after its launch at the end of May. The 'Shinhan Ultra-Short-Term Bond Fund' recorded a 3-month return of 4.26% (annualized).

The ultra-short-term bond fund, a representative parking-type product, offers the same liquidity as MMFs and has no redemption fees. It has the advantage of pursuing excess returns compared to MMFs through flexible investment strategies.

The Shinhan Ultra-Short-Term Bond Fund has established itself as the industry's leading parking-type product by showing the highest inflow of funds among ultra-short-term bond funds of the same type within three months. The Shinhan Ultra-Short-Term Bond Fund actively responds to interest rate volatility with a short duration of 90 to 180 days for the bonds included.

Based on Shinhan Asset Management's bond management capabilities, the fund carefully analyzes corporate fundamentals to select undervalued credit bonds (AA-, A2-). The core management strategy is to pursue additional returns through a relative value approach by selling overvalued securities and buying undervalued ones.

As stock market volatility expands, there is growing demand for ultra-short-term bond funds, which offer relatively high interest rates. Ultra-short-term bond products have the advantage of relatively low volatility and the ability to secure high interest rates amid increasing market volatility ahead of expected U.S. interest rate cuts.

Song Han-sang, head of the Bond Management Team 2 at Shinhan Asset Management, said, "It is expected that the U.S. and domestic benchmark interest rates will begin to decline from this year," adding, "Ultra-short-term bonds with longer durations than MMFs are likely to be more advantageous in terms of returns."

He continued, "We plan to maintain high fund returns by discovering undervalued securities with high-grade stability through thorough credit analysis."

The Shinhan Ultra-Short-Term Bond Fund is currently available for subscription at Kookmin Bank, Shinhan Bank, Shinhan Investment Corp., Samsung Securities, Hana Securities, Korea Investment & Securities, Yuanta Securities, NH Investment & Securities, Mirae Asset Securities, Hanwha Investment & Securities, Kiwoom Securities, Woori Investment & Securities, and LS Securities.

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