Shinhan Asset Management Launches "Shinhan Restarting Korea Target Return Fund"

Shinhan Asset Management announced the launch of the "Shinhan Restarting Korea Target Return Fund" on July 21, focusing on investing in industries benefiting from domestic policy changes and companies enhancing shareholder value.

This fund is a mixed bond product targeting a 7% return. It seeks to manage volatility and generate stable returns by diversifying investments in undervalued domestic stocks and short-term bonds.

With structural changes such as amendments to the Commercial Act, tax reforms, and strengthened shareholder returns taking effect, expectations are rising for the resolution of the "Korea Discount" in the Korean stock market. The Shinhan Restarting Korea Target Return Fund aims to proactively respond to these changing market conditions. It selectively includes sectors expected to benefit from policy changes and companies that are actively improving performance or implementing shareholder return policies.

The fund limits its equity investment ratio to below 50%, constructing a concentrated portfolio centered on undervalued blue-chip stocks. In the bond segment, it actively includes domestic short-term bonds and undervalued bonds to reduce volatility and pursue alpha returns. In addition, it offers a structure that allows for early redemption and flexible withdrawals. Upon maturity or achievement of the target return, it shifts to a bond-focused strategy. The fund is designed to enable investors to manage their assets flexibly and respond effectively to risks.

The core management strategy for the equity segment is to focus the portfolio on industries benefiting from policy changes, companies with improving performance, those expanding tax benefits or dividends, and those strengthening shareholder returns. For the bond segment, it includes high-quality bonds rated A- or above. The fund pursues alpha through duration adjustments and active bond rebalancing in response to changes in the interest rate environment. Rigorous risk management and sophisticated stock selection are also emphasized to enhance the fund's efficiency and stability.

Lee Chul, Head of Equity Management at Shinhan Asset Management, stated, "The capital market advancement policies that have been actively promoted since 2023 are increasing accessibility for foreign investors and spreading a culture of enhancing shareholder value." He added, "The Korean market remains attractively undervalued compared to global markets. In particular, undervalued blue-chip stocks with low PBR and strong earnings, financial stocks, and companies with strengthened shareholder return policies are attracting increasing foreign interest, and these stocks are likely to lead future market gains."

The Shinhan Restarting Korea Target Return Fund is available for subscription at Shinhan Bank, Shinhan Investment Corp., and Busan Bank. Subscriptions will be accepted from today until August 1, and the fund is scheduled to be established on August 4.

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