Daishin Asset Management Launches "Daishin Next-Day Withdrawal Short-Term Bond Fund"

Targeting an Annual Return of Low to Mid-3%

Daishin Asset Management is launching a short-term bond fund that allows next-day cash withdrawals without redemption fees.

On May 20, Daishin Asset Management announced the launch of the "Daishin Next-Day Withdrawal Short-Term Bond Fund," which pursues higher returns through more active management than MMFs (Money Market Funds) and ultra-short-term bonds, while still allowing next-day withdrawals without redemption fees.

The "Daishin Next-Day Withdrawal Short-Term Bond Fund" invests in bonds with an average maturity of around six months, commercial papers, negotiable certificates of deposit (CDs), and corporate bonds (CPs). The fund focuses on stable cash flow management and manages the asset quality and credit risk of its holdings. It seeks to enhance returns by including assets with relatively higher yields to maturity within the same maturity and sector.

This fund employs a more active strategy than MMFs, managing profits and losses by maintaining optimal remaining maturities, while also seeking capital gains in the event of interest rate declines by including high-quality assets with maturities of less than one year, depending on market conditions. The target return, after deducting fees, is expected to be in the low to mid-3% range.

The fund will be available for purchase at Daishin Securities starting today. The total annual fee ranges from 0.049% to 0.399%. There are no redemption fees, and if redeemed before 5 p.m., next-day withdrawals are possible.

Lee Jaewoo, Head of Marketing & Planning at Daishin Asset Management, stated, "We launched this product in response to increasing demand for short-term bond funds with short maturities amid recent market volatility and interest rate uncertainty." He added, "In a market where ultra-short-term interest rates have dropped significantly, this product aims to offer higher returns through active management while also providing liquidity with next-day withdrawals, making it an attractive option."