Shinhan Asset Management's Shinhan MAN Global High Yield Series Surpasses 100 Billion KRW in Assets Under Management

Shinhan Asset Management announced on the 30th that the ‘Shinhan MAN Global High Yield’ fund series surpassed 100 billion KRW in assets under management just nine months after its launch. The ‘Shinhan MAN Global High Yield Fund,’ launched at the beginning of the year, has exceeded 79 billion KRW since its January launch, driven by excellent performance. The ‘Shinhan MAN Global High Yield Monthly Dividend Fund,’ launched in April, has attracted 30 billion KRW in funds within five months, showing continuous growth.

As of the 26th of this month, the ‘Shinhan MAN Global High Yield Fund’ recorded returns of 1.92%, 3.71%, 6.45%, and 8.85% over 1 month, 3 months, 6 months, and year-to-date, respectively, ranking first in total returns among global high yield funds across all periods. Additionally, it demonstrated superior management by achieving an excess return of 3.0 percentage points compared to the average year-to-date return (5.81%) of funds in the same category.

The ‘Shinhan MAN Global High Yield Monthly Dividend Fund,’ launched in April, maintains excellent performance while offering a high dividend yield. It shows an annualized dividend yield of around 7%, with a total of five monthly dividends paid from May through September.

In fact, the underlying fund MAN Group’s monthly dividend fund, Man GLG High Yield Opportunities I H USD Net-Dist MO, has paid an average monthly dividend yield of 5.5% annually from its inception in 2020 through the end of August 2024. Moreover, it achieved a capital gain of 37.7% excluding dividends.

The secret to this outstanding performance lies in its differentiated management strategy. Typical global high yield funds construct portfolios similar to the global high yield benchmark, focusing heavily on U.S. high yield bonds. Unlike these index-centric funds, the Shinhan MAN Global High Yield Fund invests diversely in both U.S. and European high yield bonds based on individual company research. Notably, with European central banks proactively cutting interest rates recently, European high yield bonds have strengthened, showing differentiated performance compared to competing funds.

Jung-ho Park, Head of Fund Solutions at Shinhan Asset Management, said, “Looking at U.S. high yield bond spreads, they still reflect a Goldilocks scenario and are more expensive than Europe. The fund plans to maintain a higher allocation to Europe compared to the U.S. and is seeking opportunities in short-term bonds, which have lower volatility and attractive interest rates rather than long-term bonds.” He added, “The fund is currently positioned more defensively than usual, and in a situation where high yield index spreads are very tight, stock picking of relatively good individual bonds rather than passive investment will be a very important investment strategy.”

The Shinhan MAN Global High Yield Fund is currently available for subscription through Shinhan Investment Corp., KB Securities, SC First Bank, Samsung Securities, Korea Investment & Securities, Woori Investment & Securities, Yuanta Securities, among others. The Shinhan MAN Global High Yield Fund Open-ended (UH) will be launched today.