Shinyoung Asset Management, the Reason for Partnering with Tesla's Second Largest Shareholder

Heo Nam-gwon CEO "Value Stocks -> Growth Stocks... I Will Learn Stock Discovery Know-how"

Shinyoung Asset Management is launching a fund that makes long-term investments in global growth stocks in partnership with UK asset management firm Baillie Gifford, widely known as the second-largest shareholder of Tesla.

On the 21st, at a press conference held at the British Embassy in Jung-gu, Seoul, Heo Nam-kwon, CEO of Shinyoung Asset Management, said, "We intend to actively learn and apply the investment know-how of early identifying growth companies through close collaboration with Baillie Gifford."

Heo explained, "Since 1996, Shinyoung has operated with an investment philosophy of investing in companies rather than the market, discovering quality companies early and forming a partnership with them for long-term investment. It is a strategy that invests time without being influenced by short-term themes."

Heo Nam-kwon, CEO of Shinhan Asset Management, is explaining the 'Shinyoung Baillie Gifford Global Growth' fund at a press conference held on the 21st at the British Embassy in Jung-gu, Seoul.
[Photo by Shinhan Asset Management]

He added, "Baillie Gifford is also a reputable asset management firm with a long history of 115 years, investing long-term in growth stocks. From the perspective of portfolio diversification, we thought that by discovering growth stocks early, in addition to the value stocks Shinyoung has focused on, and investing long-term, the portfolio would stabilize."

The newly launched "Shinyoung Baillie Gifford Global Growth Fund" is a fund of funds that primarily invests in Baillie Gifford's flagship product, the Long-Term Global Growth (LTGG) Fund.

The LTGG Fund has a portfolio where 57% of the holdings are stocks invested in for more than five years, including over 10 years in US companies Amazon and Tesla, and over five years in Nvidia.

Heo emphasized, "There is a commonality with Baillie Gifford in that they invest long-term without being influenced by short-term themes or supply and demand. Baillie Gifford's LTGG Fund concentrates 4.5 trillion KRW of assets in 37 stocks."

He said, "Looking at Baillie Gifford's portfolio shows what investing truly means. They have invested in innovative companies like Tesla and Amazon for 10 years."

He added, "Until now, we have invested in tangible values such as present value and dividend value, but going forward, we plan to expand our investment portfolio to include growth value stocks."

He continued, "We will receive reports on portfolio contents and detailed investment points for each stock from Baillie Gifford and aim to learn growth company investment strategies."

Heo stated, "Excellent investment performance through innovative growth stocks depends on early identification of those companies. Baillie Gifford's global growth strategy has a portfolio and long-term track record verified over 20 years and offers outstanding growth stock investment opportunities through active management know-how linked with academic research results."

Founded in 1908, Baillie Gifford's main strategy is early identification and long-term investment in innovative companies.

They are Tesla's second-largest shareholder, achieving over 8,000% returns through more than 11 years of long-term investment, and have invested in Nvidia for over seven years, generating 2,800% returns.

Baillie Gifford selects investment targets through research linked with academia, including universities and research institutes.

Key future growth drivers identified by Baillie Gifford include e-commerce, healthcare, semiconductors, software, luxury goods, renewable energy, and cloud computing.

Meanwhile, the Shinyoung Baillie Gifford Global Growth Fund has been launched in two types: a currency-hedged version that mitigates risks from exchange rate fluctuations and an unhedged version that exposes assets to currency fluctuations. Starting today, subscriptions are available through Shinyoung Securities, KB Securities, Hana Securities, Korea Post Securities, Yuanta Securities, and IBK Investment & Securities.