Daishin Asset Management Launches 'Daishin High Yield Public Offering Alpha Fund'

Up to 30 Million KRW per Person for Fund Subscriptions
Separate Taxation Benefits on Dividend Income

Daishin Asset Management announced on the 22nd that it will launch a high-yield public offering fund with separate taxation benefits.

Daishin Asset Management is launching a high-yield public offering fund with separate taxation benefits. (Provided by Daishin Asset Management)

Daishin Asset Management will sell the ‘Daishin High-Yield Public Offering Alpha Fund’ for 7 business days starting from the 22nd. This fund invests in high-yield bonds rated BBB+ or below and seeks excess returns through government bond split trading, public offering stocks, and SPAC investment strategies.

The ‘Daishin High-Yield Public Offering Alpha Fund’ invests in high-yield bonds rated BBB+ or below. The included bonds are selected by analyzing the industrial cycle and corporate soundness, focusing on highly liquid yet undervalued securities. The bonds are matched with the fund’s maturity to reduce liquidity risk.

The remaining assets are allocated to government bond split trading, public offering stocks, and SPAC investments. Government bond split trading is a strategy that aims for additional returns by selling held government bonds according to market interest rate fluctuations. Public offering stock investments utilize priority allocation benefits to invest in public offering stocks and SPACs, considering corporate profit growth potential and the appropriateness of the offering price.

The Daishin High-Yield Public Offering Fund is eligible for separate taxation benefits. Financial income comprehensive taxation subjects can receive separate taxation benefits on fund subscription amounts up to 30 million KRW. The tax benefits apply to dividend income generated within 1 to 3 years of the fund subscription period. If the fund is redeemed or rights are transferred within 1 year of subscription, previously received tax benefits will be reclaimed.

This fund will be sold until April 30. The maturity date is June 30, 2025 (1 year and 2 months). The distributors are Daishin Securities, Korea Investment & Securities, and KB Securities. The total fees range from 0.575% to 1.545% per annum. Early redemption before maturity is possible, with a redemption fee of 5% of the redemption amount.

Lee Jae-woo, Head of Marketing Group at Daishin Asset Management, said, "As the public offering stock market heats up recently, interest in high-yield public offering funds is increasing. This fund, which offers high interest from high-yield bonds, public offering stock investments, and tax benefits, will be an appropriate product to respond to stock market volatility."