‘Shinhan Mangi Investment Type No.4 Fund’ Successfully Raises 28.8 Billion Won

Popularity of Maturity Investment Products Minimizing Bond Loss Risk
Continued Success of Maturity Bond Products

Shinhan Asset Management successfully raised 28.8 billion KRW for the ‘Shinhan Maturity Investment Type No.4 Bond Fund,’ a public unit-type fund that invests in domestic high-quality bonds rated A0 or higher until maturity, continuing its success with maturity investment products.

The ‘Shinhan Maturity Investment Type No.4 Bond Fund’ aligns the fund maturity and the maturity of invested bonds to approximately 1 year and 6 months to minimize the risk of bond losses due to interest rate fluctuations, while seeking higher returns than fixed-rate products such as bank deposits.

The raised amount of 28.8 billion KRW is the largest among public unit-type funds excluding target conversion funds since the beginning of the year.

More meaningful than the scale of the raised amount is that a diverse customer base subscribed through 10 sales channels including banks, securities, and insurance (retail 4 billion KRW, personal pension 7 billion KRW, retirement pension 18 billion KRW). This indicates a consensus between distributors and customers that maturity investment-type bond funds are the optimal investment alternative at the final stage of the interest rate hike cycle.

Since 2018, Shinhan Asset Management has matured and repaid three public unit maturity investment bond funds totaling 200 billion KRW and currently manages three funds including this one with a total of 80 billion KRW. Furthermore, amidst a flood of maturity-matching bond ETF launches, it is highly notable that Shinhan Asset Management is the only company in the industry continuously launching maturity investment-type bond funds as public funds based on accumulated management experience and trust.

Ryu Ji-eun, head of the WM Digital Strategy Team at Shinhan Asset Management, stated, “With growing expectations that the interest rate hike trend will come to an end, we believe that a strategy investing in corporate bonds and asset-backed securities with relatively high returns until maturity will be effective in the second half of the year.”