Shinhan Asset Management's 'Korea Paradigm Target Variable Funds No. 1–3' Achieve Target Returns

All Three Funds Achieve Target Returns
"Concentrated Investment in Core Paradigms Proves Effective"

Shinhan Asset Management announced on May 12 that the 'Shinhan Korea Paradigm Target Variable No. 3' fund achieved its target return of 6% just 12 days after its inception.

This fund, which was launched on April 27, reached a 6.08% return for its A1 class as of May 8, thus satisfying the conditions for conversion. Its total assets under management amount to 74.7 billion won, with the conversion date set for May 14. Upon reaching its target, the fund will shift from a mixed bond strategy to a bond fund strategy going forward.

As a result, all three funds in the 'Shinhan Korea Paradigm Target Variable Fund [Mixed Bond]' series—No. 1, No. 2, and No. 3—have successfully achieved their target returns, demonstrating Shinhan's management capabilities. In particular, the equity fund version, 'Shinhan Paradigm Korea Fund [Equity]', which was launched in May 2013, has consistently outperformed its benchmark index. Based on this record, its net assets have grown from 64.6 billion won to 223.7 billion won just this year.

A Shinhan Asset Management official explained, "The early achievement was made possible by the paradigm investment strategy, which swiftly captured the leading themes in the Korean stock market." The company classified areas of structural change within industries into 10 paradigms and focused its investments on core paradigms with strong market momentum and the potential for earnings improvement. In particular, this product concentrated its holdings on 20 to 30 stocks within four core paradigms: AI, shareholder value, industrials, and K-consumer goods.

Kim Kyungil, Head of the WM Pension Channel Division, stated, "The Korea Paradigm Target Variable Funds No. 1–3 are products that select core paradigms based on industrial changes and intensively include fundamentally strong companies within those paradigms." He added, "Achieving the target conversion return in just 12 days demonstrates that an active management strategy based on paradigm shifts has worked effectively in the recent market environment."

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