[Herald Economy = Kim Minji] Shinhan Asset Management announced on the 6th that the Shinhan MAN Global Bond Fund series surpassed 300 billion won in assets under management. The ‘Shinhan MAN Global High Yield Fund,’ launched at the beginning of the year, has exceeded 138 billion won since January, demonstrating remarkable performance. Meanwhile, the ‘Shinhan MAN Global High Yield Monthly Dividend Fund,’ launched in April, attracted 120 billion won in just eight months, continuing its growth trend. The ‘Shinhan MAN Global Investment Grade Bond Fund’ also exceeded its setting amount of 45 billion won in November.
As the U.S. Federal Reserve begins to lower interest rates, investors are turning to investment destinations where they can earn stable and high returns. In particular, funds are concentrating on high-yield funds which offer relatively high interest income and the potential for additional gains in the long term when interest rates fall. Investment-grade bond funds that focus on investment-grade corporate bonds are also gaining attention as they aim for stable returns.
According to fund evaluator KG Zeroin, as of November 29, the ‘Shinhan MAN Global High Yield Fund’ has recorded returns of 2.24%, 5.13%, and 10.22% over three months, six months, and year-to-date, respectively, ranking first in returns among global high-yield funds across all periods. It outperformed the average year-to-date return (7.39%) of similar type funds by 2.83 percentage points.
The key to this fund’s outstanding performance lies in the excellent stock-picking abilities of the invested fund, MAN GLG High Yield Fund. In a current market where credit spreads have tightened, the all-in-yield is significantly higher compared to investment-grade bonds or government bonds.
In particular, the ‘Shinhan MAN Global Investment Grade Bond Fund’ was renewed on October 11 by changing the existing Man GLG Strategic Bond Fund to Man GLG Global Investment Grade Opportunities, a representative global bond fund of the MAN Group.
Park Jung-ho, the fund solution team leader at Shinhan Asset Management, stated, “With the recent election of President Trump and the subsequent corporate tax cuts and regulatory policy easing, prospects are positive for high-yield bonds and investment-grade bonds. In this favorable economic environment, the business performance of bond-issuing companies is likely to improve, reducing the risk of defaults and enhancing the profitability of the companies.”