Yujin Asset Management Launches Fund Investing in US Long-Term Bonds and IPO Stocks

Long-Term Bonds and IPO Mixed Strategy Management
Target Return 7%... Enrollment Available Until May 3

Eugene Investment & Securities' subsidiary, Eugene Asset Management, announced on the 24th the launch of the ‘Eugene Champion Public Offering & US Long-term Bond Target Conversion Fund,’ which is managed with a mixed strategy of bond and public offering investments.

The newly launched Eugene Champion Public Offering & US Long-term Bond Target Conversion Securities Investment Trust (Bond Mixed - Fund of Funds) seeks capital gains from bond price increases during interest rate cuts through proactive long-term bond investments. A portion of the fund is allocated to public offering investments to pursue additional returns.

Bond investments primarily utilize exchange-traded funds (ETFs) that invest in US bonds. However, by investing in US bond ETFs listed domestically that implement currency hedging strategies, the fund enhances trading convenience and eliminates exchange rate risk. Considering market conditions, the fund also plans to invest partially in domestic long-term bond ETFs and short-term bond ETFs.

For public offering investments, the fund selects targets after thorough stock analysis and a full meeting of Eugene Asset Management’s Securities Management Headquarters, operating on the principle of selling on the listing day. The company forecasts a continued favorable atmosphere in the public offering market this year.

This fund is a target conversion type fund; once the target return of 7% is achieved, the existing investments in public offerings and long-term bond ETFs will be sold, and the fund will mainly be managed with short-term bond ETFs or MMFs to minimize volatility. This product is a unit-type fund with a fixed subscription period and can be subscribed to at Eugene Investment & Securities, Kyobo Securities, Shinhan Investment Corp., and Yuanta Securities until May 3.

Ha Seok-geun, head of the Securities Management Headquarters at Eugene Asset Management, responsible for fund management, stated, “At this point where the US Federal Reserve’s monetary policy is expected to shift from tightening to easing, the ‘Eugene Champion Public Offering & US Long-term Bond Target Conversion Fund’ can expect two types of returns by investing in US long-term government bonds: high interest income and capital gains arising from interest rate cuts.”

He added, “Additionally, we plan to pursue a third stable return by participating in large-scale IPOs scheduled for 2024. Given the recent rise in US Treasury yields, the price of US long-term government bond ETFs is in a correction phase, which we consider a good opportunity to purchase long-term government bonds at a low price from a mid-term perspective.”