Shinhan Financial Investment Launches Shinhan SHarp Global EMP Lab

[Asia Economy Reporter Minji Lee] Shinhan Financial Investment announced on the 17th that it will launch the ‘Shinhan SHarp Global EMP Lab,’ which constructs a portfolio using ETFs listed on global stock markets to reduce volatility and conducts rebalancing according to market changes.

The Shinhan SHarp Global EMP Lab is the first product introduced to the market through collaboration between the newly established Portfolio Strategy Department and WM Research Department, created in April by Shinhan Financial Investment to enhance product competitiveness and provide differentiated asset management for clients, together with the Lab Management Department.

Departing from the traditional global asset allocation strategy that invests by region and asset class, this product considers both short-term investment perspectives reflecting market conditions and long-term investment perspectives emphasizing stability. It features a strategy that flexibly responds to the market by focusing on and diversifying factors that can achieve excess returns.

This lab is ultimately managed by the Lab Management Department based on a model portfolio constructed with advice from the WM Research Department and the Portfolio Strategy Department. The management direction is discussed monthly at regular management committee meetings, and in particular, the practical teams from WM Research, Portfolio Strategy, and Lab Management hold frequent working-level meetings to monitor market trends and discuss promising ETFs and recent market trends.

The Shinhan SHarp Global EMP Lab is composed of three types of model portfolios?equity type, income type, and asset allocation type?considering clients’ investment goals and preferences. The equity type selects excess return factors from both short- and long-term perspectives and invests in carefully selected ETFs to pursue these performance factors, aiming to maximize long-term returns through diversified investment.

The income type primarily invests in preferred stocks, REITs, and high-yield bonds to stably receive dividend and interest income. The asset allocation type diversifies investments across the representative management strategies of the equity and income types and domestic bond ETFs, targeting long-term performance creation. Additionally, it is characterized by the ability to freely switch among the three types according to market conditions after subscription.

Park Imjun, head of the Lab Management Department at Shinhan Financial Investment, stated, “This product, managed by concentrating Shinhan Financial Investment’s capabilities, is designed to simultaneously achieve risk management and improved returns for clients by constructing a portfolio using global ETFs,” adding, “We plan to focus on nurturing this as a flagship in-house managed product in the future.”

The minimum subscription amount for this product is 30 million KRW, with an annual trailing fee of 1.4%. For the e-Lab, which can be subscribed to via mobile, the entry barrier is lowered with a minimum subscription amount of 10 million KRW and an annual trailing fee of 1.2%. Details and subscription are available at Shinhan Financial Investment branches and on the website. This product does not guarantee principal, and principal loss may occur depending on market conditions and exchange rate fluctuations.