Shinhan Asset Management's Dollar Short-Term Fund (USD) Surpasses 850 Billion KRW in Assets Under Management

Shinhan Asset Management announced on the 30th that the Shinhan Dollar Short-Term Fund (USD) has surpassed 850 billion KRW in assets under management.

Thanks to its stable profitability and flexible redemption structure, the fund has recently attracted new inflows into dollar assets, establishing itself as a leading product for dollar fund management.

According to fund evaluation firm Zeroin, the Shinhan Dollar Short-Term Fund (USD) posted a one-year return of 5.66%. This outperformed the average return of foreign currency MMFs at 4.53% and the average return of dollar RPs at 3.99% during the same period.

The investment base is expanding as not only corporations but also individual investors can freely subscribe to the fund. Interest in the product is growing, with more than 230 billion KRW in new inflows this year alone. Unlike foreign currency MMFs, which are only available to corporations, individuals can also invest in this fund. In addition, unlike foreign currency time deposits, investors can redeem at any time without redemption fees, making it highly liquid and recognized as a short-term investment product.

The Shinhan Dollar Short-Term Fund (USD) employs a strategy that seeks both foreign exchange premiums and interest income by investing not only in global high-quality bonds such as US Treasury Bills and dollar-denominated bonds (KP bonds), but also in select high-quality domestic won-denominated bonds. By keeping the duration under six months, the fund maintains low volatility while achieving returns above the level of foreign currency MMFs.

Kang Panseok, head of Shinhan Asset Management's Overseas Bond Management Team, stated, "Due to the recent US tariff issues, yields on government bonds with maturities of two years or longer, which are sensitive to the policy rate, are already reflecting related changes." He added, "The relative interest rate attractiveness of short-term bonds, which are heavily influenced by the policy rate, is expected to continue going forward."

Kang also predicted, "Both the investment demand seeking capital gains in anticipation of rate cuts and the demand for short-term bonds for liquidity management purposes will remain solid," and "the high interest rate merit of short-term bonds is likely to persist for the time being."

The Shinhan Dollar Short-Term Fund (USD) is available for subscription at Shinhan Bank, NongHyup Bank, Hana Bank, Woori Bank, IBK Industrial Bank of Korea, Shinhan Investment Corp., Samsung Securities, Mirae Asset Securities, NH Investment & Securities, Korea Investment & Securities, Hana Securities, Yuanta Securities, Daishin Securities, Meritz Securities, and LS Securities.