Shinhan Asset Management's 'Shinhan MAN Global High Yield Fund Series' Surpasses 50 Billion KRW in Net Assets

Shinhan Asset Management announced on the 26th that the ‘Shinhan MAN Global High Yield’ fund series surpassed 50 billion KRW within six months of its launch. The ‘Shinhan MAN Global High Yield Fund,’ launched at the beginning of the year, exceeded 42 billion KRW since its January launch. The ‘Shinhan MAN Global High Yield Monthly Dividend Fund,’ launched in April, has shown continuous growth with an inflow of 8.8 billion KRW within just two months.

The ‘Shinhan MAN Global High Yield Fund’ recorded returns of 2.75% over three months and 5.40% year-to-date, ranking first among global high yield funds. Additionally, it demonstrated operational excellence by achieving more than double the excess return (1.75 percentage points) compared to the average three-month return (1.05%) of funds in the same category. Building on this performance, the ‘Shinhan MAN Global High Yield Monthly Dividend Fund,’ launched in April, offers a high dividend yield of approximately 7% annualized, providing monthly dividends while also allowing for capital gains.

The ‘Shinhan MAN Global High Yield Fund’ is a fund of funds that invests in the UK-based Man High Yield Opportunities fund. It is a flagship high yield fund of the MAN Group. The underlying fund, MAN GLG High Yield Fund, has recorded a return of 60.7% (9.2% annualized) since its launch in 2019, demonstrating more than twice the excess performance compared to the global high yield index (25.6%, 4.3% annualized).

The secret to its outstanding performance lies in its differentiated management strategy. While typical global high yield funds construct portfolios similar to the global high yield benchmark, focusing heavily on US high yield bonds, the Shinhan MAN Global High Yield Fund invests diversely in both US and European high yield bonds based on individual company research, unlike index-centered funds. In particular, with recent preemptive interest rate cuts by European central banks, European high yield bonds have been performing strongly, showing differentiated results compared to competing funds.

Park Jeong-ho, head of the Fund Solution team at Shinhan Asset Management, stated, "The ECB’s policy of preemptive rate cuts ahead of the US Federal Reserve is expected to improve profit outlooks for European companies, which should positively impact high yield bond spreads. In the high yield bond market, spreads have remained very tight, making the selection of relatively good individual bonds a very important investment strategy compared to index investing."