Shinhan Asset Management Launches Shinhan Value Up Index Alpha Fund

Core Company Investment in Value-Up Program
Pursuing Excess Performance with Value-Up Alpha Strategy

Shinhan Asset Management announced on the 5th that it will launch the ‘Shinhan Value-Up Index Alpha Fund,’ which seeks excess returns compared to the Korea Value-Up Index.

This product is a remodeled version of the ‘Korea Treasury Stock & High Dividend Index Fund,’ launched in October 2006, updated alongside the announcement of the Value-Up Index. It aims to resolve the ‘Korea Discount’ through enhancing corporate value by adding a proven fundamental score strategy to the Korea Value-Up Index, pursuing Value-Up + Alpha returns.

According to fund rating agency KG Zeroin, the ‘Shinhan Value-Up Index Alpha Fund’ recorded a 1-year return of 15.49%, outperforming the KOSPI by 3.82 percentage points (P). Its 5-year performance was 50.76%, surpassing the KOSPI’s 25.22% increase over the same period.

The Shinhan Value-Up Index Alpha Fund tracks the Korea Value-Up Index and pursues alpha relative to the index through a Value-Up Alpha strategy that selectively invests in promising companies. The Value-Up Alpha strategy places a high weight on companies with a commitment to continuous shareholder return policies and sustainable growth by considering equity capital, dividends, treasury stock repurchases, as well as sales and cash flow. It adjusts investment weights within the Value-Up Index and proactively identifies and invests in companies not yet included in the index but expected to benefit from future index inclusion.

Kim Ki-duk, Head of the Quantitative Management Center at Shinhan Asset Management, said, "The Value-Up program will lead to efficient capital utilization and strengthened shareholder returns by companies," and added, "We hope it will become a new driving force in the undervalued domestic stock market."