Shinhan Dollar Short-Term Fund Surpasses 1 Trillion Won in Assets Under Management

Shinhan Asset Management announced on September 19 that its flagship dollar parking product, the "Shinhan Dollar Short-Term Fund (USD)," has surpassed 1 trillion won in assets under management. The company attributed the strong inflow of funds to its proactive investment strategy in dollar assets, which has delivered superior performance compared to competing products.

According to fund evaluation firm Zeroin, as of September 16, the Shinhan Dollar Short-Term Fund (USD) recorded a one-year return of 5.44%. This figure is 1 to 1.5 percentage points higher than major competing products, such as foreign currency money market funds (MMFs) at 4.32% and dollar repurchase agreements (RPs) at 3.94% over the same period.

Despite being a stable short-term bond fund, this performance gap has attracted investors who hold dollar assets. Since the beginning of this year, the fund has seen a net inflow of more than 400 billion won, maintaining steady growth.

Unlike foreign currency MMFs, which are available only to corporations, the Shinhan Dollar Short-Term Fund (USD) is also open to individual investors. It offers the same redemption cycle as foreign currency MMFs, providing convenience for investors. In addition, unlike foreign currency time deposits that require funds to be locked in for a set period, this fund allows redemptions at any time without redemption fees, making it highly liquid and optimized for short-term dollar fund management.

The fund pursues returns higher than foreign currency MMFs by employing a strategy that invests not only in global high-quality bonds such as U.S. Treasury bills (T-Bills) and dollar-denominated bonds (Korean Paper), but also in high-quality domestic won-denominated bonds, thereby seeking both currency premiums and interest income.

Kang Panseok, head of Shinhan Asset Management’s Overseas Bond Investment Team, stated, "With the resumption of the U.S. interest rate cut cycle expected in the second half of this year, we anticipate that the relative attractiveness of short-term rates for liquidity management, rather than for capital gains from base rate cuts, will be maintained for a considerable period."

He added, "The Shinhan Dollar Short-Term Fund is a product that investors should pay attention to as a dollar short-term fund management tool, as it allows free redemption and pursues stable returns in the current market environment."

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