Shinhan BNPP Launches Emerging Market Bond Short-Term Investment Fund

Emerging Market USD-Denominated Bond Investment... 1-3 Year Duration

[Asia Economy Reporter Minwoo Lee] Shinhan BNP Paribas Asset Management is launching a fund that invests in dollar-denominated emerging market bonds offering relatively high interest rates.

Shinhan BNPP announced on the 26th that it has launched the 'Shinhan BNP Emerging Short-Term Bond' fund.

This product invests by identifying and investing in U.S. dollar-denominated government and corporate bonds in emerging markets with relatively high interest rates. It excludes local currency exposure and maintains a duration (average recovery period of investment funds) of about 1 to 3 years to reduce the risk of bond price fluctuations. It is described as an emerging high-yield bond fund that combines the profitability of emerging bonds with the stability of short-term dollar-denominated bonds.

This product also invests singly and indirectly in the 'Ashmore Emerging Market Short Duration Fund' managed by Ashmore Group Asset Management, a specialist emerging market manager listed on the London Stock Exchange since 2006. This is the second product of this type launched by Shinhan BNPP, following the 'Shinhan BNPP H2O Global Bond.'

It was launched in three forms: currency-hedged fund, currency-open fund, and U.S. dollar (USD) base price fund. Investors can choose and invest according to their currency outlook or investment objectives. Subscriptions are available nationwide through major sales companies such as Korea Investment & Securities and Yuanta Securities, as well as online.

A Shinhan BNP Paribas Asset Management official said, "We are discovering and investing in high-yield bonds in emerging markets, whose interest rate attractiveness has increased due to recent adjustments, making it suitable for customers who prefer active investment," adding, "There is also the advantage of no redemption fees, allowing flexible fund management."