According to fund evaluation company KG Zeroin, the 3-month and 6-month returns of the Samsung ESG Value Bond No. 1 Fund were 1.42% and 2.76%, respectively. These results exceed the benchmark. The fund has also seen steady inflows, with assets under management rising from 26 billion won in June last year to 318.3 billion won.
Amid ongoing economic uncertainty caused by factors such as the recent rapid rise in the domestic stock market and global variables like Israel's attack on Iran, the fund is seen as earning market trust for its stable performance and investment strategy through a differentiated management approach.
The Samsung ESG Value Bond No. 1 Fund primarily invests in bonds and commercial papers issued by companies that receive high evaluations for their ESG activities. Investments that consider ESG factors can enhance a company's financial stability and sustainability, which in turn can provide more robust returns in bond investments.
The fund also applies conservative criteria in portfolio construction. Unlike most credit funds that rely on low-grade bonds to boost performance, the fund excludes project financing (PF)-related securities and high-risk sectors and issues restricted by internal regulations. By building a portfolio mainly of high-quality corporate bonds with an average credit rating of AA0, the fund has increased credit stability. In addition, it selects undervalued sectors and bonds to maximize interest income as part of its strategy.
Although classified as a mid-term bond fund, the fund actually flexibly adjusts its duration within a range of 1 to 3 years to respond sensitively to market changes. It is rare in Korea for a fund to invest in credit bonds with short- to mid-term durations, aiming not only for stable interest income but also capital gains.
Samsung Asset Management has established a 'Credit Universe Investment Process' with dedicated credit analysts and a research team. By carefully selecting credit bonds based on corporate creditworthiness and fundamental analysis, the company systematically controls credit risk in the portfolio.
Kwak Taewon, Head of Domestic Bond Team 2 at Samsung Asset Management, said, "In a situation like now, where economic uncertainty is high, a decline in interest rates allows investors to expect both capital gains and credit interest income. Based on Samsung Asset Management's benchmark interest rate prediction model, we will flexibly adjust duration to deliver meaningful results to our investors."
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