Baring Shareholder Value Growth Target Maturity Fund No. 1 Achieves Target Return

On May 28, Baring Asset Management announced that its first target maturity fund, the 'Baring Shareholder Value Growth Target Maturity Fund No. 1,' had successfully achieved its target return of 8%.

This fund selectively invests in companies that are actively enhancing shareholder value, such as those expanding shareholder returns, canceling treasury shares, and strengthening dividends. The product is designed so that once the return reaches the target of 8%, the assets are converted into stable bond-type assets.

When the fund was launched on June 17 last year, the KOSPI stood at 2,744.10. On May 26, when the target return was achieved, the KOSPI had fallen by 99.7 points to 2,644.4. Nevertheless, the fund successfully achieved its initial target return of 8%. The achievement of the target return is based on Class A units.

A Baring Asset Management representative stated, "The fund's performance demonstrates that our investment philosophy, which has focused on sustainable shareholder return policies and the potential for governance improvement, has proven effective in the market." The representative added, "A carefully selected portfolio based on corporate value excellence, expansion of shareholder returns, and the potential for governance improvement played a key role in achieving the target return."

Upon achieving the target return, the fund shifts its assets into bond ETFs and money market funds (MMFs), thereby strengthening its defense against market volatility. This is a strategy that provides both stability and profitability to investors. Baring Asset Management is also considering launching a 'No. 2 Fund' that follows the same strategy.

Choi Sanghyun, Head of Equities at Baring Asset Management, stated, "Although there are concerns that the momentum for shareholder value growth has weakened amid recent domestic and international political and economic uncertainties, value-up initiatives remain a critical issue in the Korean stock market." He emphasized, "In fact, after the investment team closely reviewed 2024 year-end dividends and disclosures on treasury share buybacks and cancellations, we could see that many companies are actively implementing value-up policies despite domestic political uncertainties."