Shinhan Asset Management's 'Shinhan Samsung Electronics Alpha Mixed Fund'... No.1 in Net Inflow of Retirement Pension Funds

Shinhan Asset Management announced on the 13th that the ‘Shinhan Samsung Electronics Alpha Mixed Fund’ has attracted the most inflows among retirement pension bond mixed-type funds since the beginning of the year.

As more investors show interest in retirement pensions for stable retirement preparation, active fund investments are continuing in retirement pension accounts. With no signs of inflation easing, investors are moving their funds into bond mixed-type products that can be expected to deliver better performance. Among these, the ‘Shinhan Samsung Electronics Alpha Fund’ has attracted 11.2 billion KRW in inflows since the beginning of the year, being the only product in the same category (bond mixed-type) to increase by more than 10 billion KRW, maintaining investor interest. This is evaluated to meet investors’ needs who want better returns than deposits, with an easy-to-understand product structure and a one-year performance of 7.67%.

The ‘Shinhan Samsung Electronics Alpha Fund’ invests solely in Samsung Electronics stocks under the concept of Samsung Electronics and bond investment, actively adjusting the stock proportion based on the fund manager’s judgment. The investment ratio in Samsung Electronics is flexibly adjusted within the market capitalization ratio (up to 30%) according to thorough analysis and market outlook by the fund manager. Bonds are invested in government bonds, local bonds, special bonds, and corporate and financial bonds rated A- or higher, pursuing stable returns. The structure, which adds bond interest, Samsung Electronics dividends, and alpha from Samsung Electronics stock price changes, makes this product attractive. Additionally, it allows investment of up to 100% of retirement pension reserves, enabling convenient investment through retirement pension accounts.

This year, Samsung Electronics’ memory semiconductor operating profit is expected to return to black after six quarters, improving performance and investor sentiment. Experts also foresee a stock price rebound given the positive environment surrounding the semiconductor industry. Many experts agree that now is the right time to buy Samsung Electronics.

Jung Sung-han, Head of the Alpha Management Center at Shinhan Asset Management, said, “As the AI industry continues to grow, a positive spillover effect is expected in Samsung Electronics’ performance. This is because Samsung Electronics benefits not only from memory and non-memory semiconductors but also from improving on-device AI smartphone sales.” He added, “Samsung Electronics is undervalued compared to competitors and during past semiconductor booms, and this presents a good investment opportunity to simultaneously generate alpha from undervalued Samsung Electronics and stable returns from higher bond yields than before.”