Shinhan Asset Management "Eoljuka Fund, a Product to Watch in Recovery Market"

Outperforming KOSPI by 3.38%p in Monthly Returns
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[Asia Economy Reporter Kwangho Lee] Shinhan Asset Management recommended the ‘Shinhan Early Bird Fund’ as an investment product to focus on the recovery trend expected from the slowdown in U.S. inflation and the easing of monetary tightening.

Since the beginning of the year, funds have been flowing back into the stock market, and the market is gradually starting to look for new leading stocks. The KOSPI, which had fallen to the mid-2100s in the second half of last year, now appears to be aiming for the 2400 level again. With global experts, including the IMF Managing Director, mentioning a ‘rebound next year,’ expectations are reflected in the market, and buying by foreigners and institutions has been steadily continuing since the start of the year.

Amid this, Shinhan Asset Management proposed the Shinhan Early Bird Fund as an investment option to maximize opportunities. The Shinhan Early Bird Fund, launched in 2005 and managed for over 17 years, is Shinhan Asset Management’s representative domestic equity fund that invests by discovering leading stocks through proactive research.

Since its inception in 2005, it has recorded an outstanding return of 310.49%, exceeding the KOSPI index’s rise (95.99%) over the same period by more than three times. As of January 24, its recent one-month return was 6.75%, outperforming the KOSPI by 3.38 percentage points, and it showed excellent performance regardless of term with a three-month return of 13.07%.

The Shinhan Early Bird Fund shows particular strength in sideways markets where it is difficult to predict market trends and clear leading stocks are not visible, as recently. The fund pursues a strategy of proactively analyzing companies to invest early in next leading stocks based on solid performance and quickly realizing profits at appropriate valuations. While continuously discovering potential leading stocks, it creates alpha compared to the market by boldly investing in companies with high conviction.

This management strategy is reflected in its performance over the past several years. In 2021, a representative sideways market, it showed outstanding performance compared to the KOSPI index. Even in the challenging 2022 market, affected by various issues such as U.S. interest rate hikes and the Russia-Ukraine war, it demonstrated defensive performance against the KOSPI’s decline, making it known as a fund that pursues higher performance than the market in all phases of rise, sideways, and fall.

Shin Ha-nui, Deputy Head of Equity Management Team 1 at Shinhan Asset Management and manager of the Shinhan Early Bird Fund, said, “Concerns about economic recession in Europe and the U.S. continue, but at this point, inflation stabilization signals are confirmed through various indicators, suggesting we are in the late phase of the interest rate hike cycle.” He added, “From a business cycle perspective, the market’s valuation appeal is highlighted, making this an optimal entry point. We will continue to expand the weighting of undervalued stocks and make our best efforts to achieve outstanding performance compared to the market by discovering the next leading stocks.”