Daishin Asset Management Launches "Daishin G.O. Korea Target Conversion" Fund

Daishin Asset Management, an affiliate of Daishin Securities, announced on March 4 that it will launch the “Daishin G.O. Korea Target Conversion Securities Investment Trust,” which invests in both domestic stocks and government bonds.

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This fund aims to achieve a base price of KRW 1,070 (a 7% increase, after deducting pre-tax and A-class management fees) by diversifying investments in promising domestic stocks and government bonds.

The overall stock allocation is managed at below 50% to control volatility, and a split trading strategy is used to disperse price risk. The fund maintains a balanced investment in leading companies at the forefront of Korea's industries as well as high-dividend stocks.

The bond portion is kept at 50% or higher, focusing on benchmark government bonds with 3-, 5-, and 10-year maturities. When a decline in interest rates is expected, the fund increases duration; when a rise is anticipated, duration is reduced, employing a flexible strategy.

Upon achieving the target return, all stocks and medium- to long-term government bonds are sold within five business days. Subsequently, 60% or more of the assets are allocated to short-term government bonds with a remaining maturity of 12 months or less, while liquidity and stability are ensured through the parallel use of short-term financial products such as government and public bond-type money market funds (MMFs) and repurchase agreements (RPs).

If the fund does not reach its target, it can be operated for up to three years. If the target is achieved within six months from the fund’s inception, it will be liquidated within one year from the inception date; if achieved after six months, liquidation will occur six months after the conversion date. There are no redemption fees, and redemption proceeds are paid within three to five business days, depending on the request date.

Since 2023, Daishin Asset Management has launched a total of five target conversion bond-mixed funds. All of these products achieved their target returns within approximately one year of operation.

A representative from Daishin Asset Management stated, “This fund combines growth-oriented investments in leading companies, a high-dividend strategy, and government bond management to pursue both growth potential and defensive strength. Through the target conversion structure, we aim to provide stable return management even during volatile market phases.”

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