Shinhan Asset Management's 'Dollar Short-Term Fund' Surpasses 500 Billion Won in Assets Under Management

Shinhan Asset Management announced on the 13th that the ‘Shinhan Dollar Short-Term Fund (USD)’ has surpassed 528.1 billion KRW in assets under management. The fund’s active management strategy for dollar assets is cited as the main reason for its superior performance compared to competing products, driving capital inflows.

According to the fund rating agency Zeroin, the ‘Shinhan Dollar Short-Term Fund (USD)’ has recorded an annualized return of 6.05% since its inception. It has significantly outperformed competing products over the same period, such as foreign currency MMFs (5.31%) and dollar RPs (4.78%), demonstrating excellent management capabilities.

Thanks to this product competitiveness, the ‘Shinhan Dollar Short-Term Fund (USD)’ has attracted demand not only from individuals but also from corporations and institutional investors holding large amounts of dollars, recording net inflows of over 470 billion KRW this year alone. Since surpassing 100 million USD in February this year, it has grown more than threefold in just seven months.

The ‘Shinhan Dollar Short-Term Fund (USD)’ invests in U.S. Treasury bills, considered the safest assets, as well as USD-denominated bonds (KP bonds). It also includes some high-quality domestic bonds and employs a Sell&Buy (spot FX sell and forward FX buy) strategy along with a short duration strategy within six months to pursue stable additional returns. Compared to foreign currency MMFs, this relatively flexible strategy aims for a similar level of volatility while achieving higher performance.

Unlike foreign currency MMFs, which are only available to corporations, the ‘Shinhan Dollar Short-Term Fund (USD)’ is open to individual investors as well and offers the same redemption cycle as foreign currency MMFs, providing investment convenience. Additionally, unlike foreign currency time deposits that require a fixed investment period, it allows redemptions at any time without redemption fees, making it suitable for managing short-term dollar funds.

Kang Pan-seok, head of the overseas bond management team at Shinhan Asset Management, said, “With a U.S. interest rate cut imminent, long-term bond yields are rapidly falling in anticipation, maintaining the relative interest rate advantage of short-term bonds, which are more sensitive to the base rate. The relative attractiveness of short-term bond yields for liquidity management, rather than investment demand to maximize capital gains from rate cuts, is expected to persist for a considerable period.”

The Shinhan Dollar Short-Term Fund (USD) is currently available for purchase at Shinhan Bank, NongHyup Bank, Hana Bank, Woori Bank, IBK Industrial Bank, Shinhan Investment Corp., Samsung Securities, Mirae Asset Securities, NH Investment & Securities, Korea Investment & Securities, Hana Securities, Yuanta Securities, Daishin Securities, Meritz Securities, and LS Securities.