Shinhan MAN Global High Yield Fund Surpasses 30 Billion KRW in Assets Under Management

Shinhan Asset Management announced on the 28th that the 'Shinhan MAN Global High Yield Fund' surpassed 30 billion KRW in assets under management just five months after its launch. The fund has shown continuous growth with steady capital inflows alongside excellent performance.

The 3-month and year-to-date returns were 3.42% and 4.68%, respectively, ranking first among global high yield funds. It demonstrated superior management by achieving more than double the excess return (1.76%p) compared to the 3-month average return (1.66%) of funds in the same category.

The 'Shinhan MAN Global High Yield Fund' is a fund of funds investing in the UK-based Man High Yield Opportunities fund. Since its launch in 2019, the underlying MAN GLG High Yield Fund has recorded a return of 58.1% (annualized 9.1%), showing more than twice the excess performance compared to the global high yield index (24.0%, annualized 4.2%).

Generally, the YTW (Yield to Worst, the minimum annualized yield an investor can receive considering early bond redemption) of the high yield fund is 10.4%, outperforming the benchmark ICE BofA Global High Yield Index’s YTW of 7.8%.

The secret to this outstanding performance lies in its differentiated management strategy. While typical global high yield funds construct portfolios similar to the global high yield benchmark, the Shinhan MAN Global High Yield Fund’s biggest difference is selecting individual corporate securities through credit research rather than relying on index-based funds.

It discovers and selects stocks in sectors or companies that are less researched in the market but have excellent fundamentals and are priced competitively. The underlying Man High Yield Opportunities fund is also noted for its rigorous risk management, with no defaults among its holdings in the past four years.

Responding to investors’ demand for monthly dividends, Shinhan Asset Management launched the 'Shinhan MAN Global High Yield Monthly Dividend Fund' with the same management strategy on April 23. This product, which offers both monthly dividends and capital gains, has attracted over 5 billion KRW in assets within one month of its launch. The first scheduled monthly dividend is expected to yield around 7% on an annualized basis.

Meanwhile, the Shinhan MAN Global High Yield Fund is currently available for subscription through SC First Bank, Samsung Securities, Korea Investment & Securities, and Yuanta Securities.