"Preparing Real Estate Fund with Goal for First Half of This Year"
The "Value Investment Specialist" Shin Young Asset Management is making a fresh start as a comprehensive asset management company. The photo shows Nam-kwon Heo, CEO of Shin Young Asset Management, explaining the "Shin Young Baillie Gifford Global Growth Fund" at a press conference in September last year. Photo by Shin Young Asset Management
"Shinyoung Asset Management," known as a 'value investment powerhouse,' is embarking on a new journey as a comprehensive asset management company. Since its founding in 1996, it is also preparing its first real estate fund.
According to financial authorities and the asset management industry on the 6th, Shinyoung Asset Management, which recently obtained approval as a comprehensive asset management company, is preparing its first real estate fund aiming for a launch in the first half of this year. The company plans to expand its fund lineup, currently focused on stocks and bonds, to include alternative investments.
The Financial Services Commission approved Shinyoung Asset Management's application for a change in financial investment business license at its regular meeting in December last year. The business applied for by Shinyoung Asset Management is the comprehensive asset management business license (3-1-1). Under the current Capital Markets and Financial Investment Services Act, asset management companies must obtain approval for each collective investment scheme product to operate that product. Until now, Shinyoung Asset Management could only operate discontinued public funds such as equity and bond funds, but now it can expand its scope to include real estate and mixed assets.
It is also expected to gain some synergy by sharing real estate risk management know-how from its group company, Shinyoung Real Estate Trust, which obtained its full license in October 2019. However, since internal transactions between affiliates are prohibited under the Capital Markets Act, close collaboration between the two companies is expected to be difficult.
Flagship funds that experienced ups and downs last year due to the neglect of value stocks have recently shown a rebound in returns. Representative examples include the flagship 'Marathon' and 'Dividend Stock' series. As of the 1st, Shinyoung Asset Management's AUM (funds + discretionary investment) was recorded at KRW 3.9996 trillion. In terms of net assets, it increased by KRW 218.9 billion compared to the same period last year, reaching KRW 4.7227 trillion. Returns are also recovering. For example, the representative fund 'Shinyoung Value High Dividend Securities Investment Trust (Equity) Class C' posted a 1-month return of 3.89% as of the 5th, outperforming the KOSPI index's rise of 0.91% during the same period.
A Shinyoung Asset Management official said, "While stocks and bonds were the main focus before, we obtained the comprehensive management license to offer alternative funds to clients from an asset allocation perspective. We aim to introduce alternative investment funds focused on stability, targeting the safest possible products."
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