Shinhan Asset Management's MAN Global Bond Fund Series Surpasses 300 Billion KRW in Assets Under Management

Shinhan Asset Management announced on the 6th that the assets under management of the Shinhan MAN Global Bond Fund Series have surpassed 300 billion KRW.

The ‘Shinhan MAN Global High Yield Fund,’ launched at the beginning of the year, has exceeded 138 billion KRW since its launch in January, based on excellent performance. The ‘Shinhan MAN Global High Yield Monthly Dividend Fund,’ launched in April, has shown continuous growth with an inflow of 120 billion KRW over eight months.

With growing interest in investment-grade bonds recently, the ‘Shinhan MAN Global Investment Grade Bond Fund’ also surpassed 45 billion KRW in assets under management last November. As the U.S. Federal Reserve(Fed) begins to cut interest rates in earnest, investors are seeking investment destinations that can provide stable and high returns. Funds have flowed into high-yield funds, which offer relatively high interest income and the potential for additional returns when interest rates decline over the long term. Investment-grade bond funds, which invest in high-quality corporate bonds rated investment grade or higher to pursue stable returns, are also attracting attention.

According to the fund rating agency KG Zeroin, as of November 29, the ‘Shinhan MAN Global High Yield Fund’ recorded returns of 2.24%, 5.13%, and 10.22% over 3 months, 6 months, and year-to-date, respectively, ranking first in returns among global high-yield funds across all periods.

The secret to achieving such excellent performance is attributed to the outstanding stock selection ability of the underlying fund, MAN GLG High Yield Fund. Currently, with credit spreads tightening, the overall yield (All-in-yield) is significantly higher compared to investment-grade bonds or government bonds. The fact that the credit spreads of the bonds held by the fund are higher than the benchmark indicates superior stock selection.

The ‘Shinhan MAN Global Investment Grade Bond Fund’ was newly renewed on October 11. It invests in about 150 companies with high conviction by leveraging MAN Group’s excellent stock selection capabilities. The fund pursues excess returns compared to the index through flexible regional allocation according to global bond market conditions. The underlying fund achieved a year-to-date return of 12.58%, outperforming the benchmark (3.76%).

Park Jeong-ho, Fund Solutions Team Leader at Shinhan Asset Management, said, "With U.S. President-elect Donald Trump pushing for corporate tax cuts and deregulation policies, high-yield bonds and investment-grade bonds look positive." He added, "Under a favorable economic environment, the business performance of bond-issuing companies is likely to improve," and "the default risk is reduced, so the profitability of these companies is expected to improve."

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