Baring Asset Management Launches Shareholder Value Growth Target Conversion Fund No.2

On August 19, Baring Asset Management announced that it will be accepting subscriptions for the "Baring Shareholder Value Growth Target Conversion Fund No.2," which invests in domestic companies actively working to enhance shareholder value, until the 29th.

This fund makes proactive investments in domestic companies that are actively engaged in initiatives such as share buybacks and cancellations, dividend increases, and improvements in corporate governance to enhance shareholder value. When the target return of 8% (based on Class A, cumulative base price of 1,080 KRW) is achieved, the fund is automatically converted into a bond-type fund.

After achieving its target, the fund will sell all equity assets and convert into a bond-fund-of-funds, investing exclusively in bond assets. The fund name will also change to "Baring Shareholder Value Growth Target Conversion Securities Investment Trust No.2 [Bond-Fund-of-Funds Type]."

The first fund, launched last year, attracted market attention by achieving its target return early, despite a decline in the KOSPI. Following continued requests for funds with the same strategy, the second fund has now been introduced.

Choi Sanghyun, Head of Equities at Baring Asset Management, stated, "With the government's strong commitment to capital market revitalization and ongoing discussions about institutional changes such as amendments to the Commercial Act, now is the time for proactive investment in shareholder-friendly companies with high potential for dividend growth and corporate value appreciation."

Based on analysis of companies' intrinsic value, the fund will focus investments on around 40 undervalued stocks with strong growth prospects and high shareholder return potential to maximize returns. The strategy also involves investing in high-dividend and quarterly dividend stocks to mitigate volatility with dividend income and enhance stock price resilience during market shocks. The fund also plans to make proactive investments in stocks expected to benefit from institutional reforms, including changes to the Commercial Act and tax system.

This is a closed-end fund and subscriptions are only available during the offering period.

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