Shinyoung Asset Management announced on May 27 that it is launching a target maturity fund called the ‘Shinyoung K-Global Hit Target Maturity Securities Investment Trust No.1 (Equity).’
The Shinyoung K-Global Hit Target Maturity Fund is designed to select companies with strong intrinsic value and employs an enhanced management strategy to minimize volatility. It invests in domestic equities with a target return of 8%. After achieving this target, the fund shifts its management to short-term government bond ETFs and government bond-type corporate MMFs to minimize interest rate and market volatility risks.
As shareholder-friendly policies such as the Value-Up (corporate value enhancement) program, amendments to the Commercial Act, and discussions on the separate taxation of dividend income are underway, Shinyoung Asset Management is strengthening its capabilities in discovering and evaluating corporate value.
Um Junhum, CEO of Shinyoung Asset Management, stated, “Not only the Value-Up program but also changes in capital market regulations, such as amendments to the Commercial Act and discussions on the separate taxation of dividend income, are promoting greater transparency in corporate governance and enhancing shareholder returns. This further highlights the importance of corporate value assessment and management strategy.” He added, “Shinyoung Asset Management will actively respond to these changes in the market environment based on our long-standing expertise in value assessment.”
The discussions on amending the Commercial Act are expanding the fiduciary duty of directors from serving only the company to serving the interests of all shareholders, thereby making corporate governance more transparent and increasing the potential for the revaluation of undervalued companies. Discussions on the separate taxation of dividend income are also likely to promote increased dividends, which could lead to stronger shareholder return policies. The combination of institutional changes and the Value-Up program is expected to bring renewed attention to the corporate value of undervalued stocks.
Shinyoung Asset Management expects the second quarter of this year to be a period of absorbing uncertainties in the global stock markets. From the second half of the year, the company anticipates a positive trend in both global and domestic markets, driven by expectations of tax cut discussions and the resolution of political uncertainties. The fund will build its portfolio by identifying stocks with strengths against external factors such as tariffs and trade wars, leveraging global competitiveness. Through research-based stock selection, the fund will make concentrated investments in 30 to 50 stocks, utilizing Shinyoung Asset Management’s proprietary ‘Q9’?nine key questions?to evaluate competitiveness, stability, governance, and valuation of companies.
The ‘Shinyoung K-Global Hit Target Maturity Fund’ is available for subscription through Samsung Securities, Hana Securities, Shinyoung Securities, KB Securities, Mirae Asset Securities, IM Securities, and IBK Investment & Securities until June 5. The front-end sales fee is 1% for Class A, and there is no redemption fee.
The Shinyoung Corporate Value Level-Up Target Maturity No.1 Fund, launched last year, reached its target return of 8% as of May 26, with a fund size of 46 billion KRW. After converting to a bond fund-of-funds structure, it is set to enter a stable management phase. The fund achieved excess returns even during periods of market volatility when both domestic and international stock markets declined after its inception.
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