Fund caps equity at 50%, pairs it with high-grade bonds to pursue growth and stability; Paradigm investment strategy extended to bond-mixed format, completing product lineup

Shinhan Asset Management has launched the Shinhan Paradigm Korea 50 Fund, a bond-mixed fund investing in both equities and high-grade bonds. [Provided by Shinhan Asset Management]
Shinhan Asset Management has launched the Shinhan Paradigm Korea 50 Fund, a bond-mixed fund investing in both equities and high-grade bonds. [Provided by Shinhan Asset Management]

Shinhan Asset Management on Friday launched the Shinhan Paradigm Korea 50 Fund, a bond-mixed fund applying the firm's Paradigm investment strategy to structural changes in the domestic stock market.

The fund keeps its equity allocation at or below 50% while also investing in high-grade bonds. Its defining feature is the pursuit of both growth — by participating in domestic equity market opportunities — and stability, using bond investment to reduce volatility and generate steady interest income.

Shinhan Asset Management's Paradigm investment strategy goes beyond traditional sector classifications, identifying investment opportunities centered on structural changes within industries and emerging growth drivers. The approach builds a diversified portfolio of promising companies around core themes — AI, shareholder value, industrials and K-consumer goods — through corporate visits and fundamental analysis.

Shinhan Asset Management has been accelerating its product lineup expansion alongside recent moves to strengthen policy-fund management and its responsible investment framework. After being selected as a manager for the National Growth Fund's challenge and small-league categories, the firm became the first in the industry to establish a stewardship committee chaired by an outside director. With this latest launch, it has extended the Paradigm strategy to a bond-mixed format, completing its investment strategy lineup.

The existing Shinhan Paradigm Korea Fund posted a return of 219.72% over the past year as of Thursday, according to data provider Zeroin. The Shinhan Paradigm Korea 50 Fund brings the same Paradigm investment strategy to a bond-mixed structure, and was launched to meet demand from investors seeking both growth potential and stability.

On the bond side, the fund invests in government, public and high-grade credit bonds to generate steady interest income. The portfolio centers on bonds with low credit risk and is managed with a relatively short duration to navigate interest rate volatility. This allows the fund to pursue equity market upside while maintaining a stable bond-based foundation.

With this launch, Shinhan Asset Management now offers a full Paradigm investment strategy lineup spanning the Shinhan Paradigm Korea Fund, the Shinhan Paradigm Korea 50 Fund and the Shinhan Paradigm Korea 30 Fund. Investors can access the strategy through equity or bond-mixed vehicles depending on their return expectations and risk appetite. Total net assets under management across all Paradigm strategy funds currently stand at 339.3 billion won ($220 million).

"As expectations for structural change and growth potential in the domestic stock market rise, each investor's return expectations and risk preferences will inevitably differ," said Kim Gyeong-il, head of Shinhan Asset Management's WM pension channel division. "With the launch of the Shinhan Paradigm Korea 50 Fund, we have built a Paradigm investment strategy lineup covering conservative, balanced and aggressive investor profiles."

Kim added that the fund "is well suited for investors who want to capture growth opportunities in the domestic stock market during a period of paradigm shift while managing volatility through high-grade bond investment," and pledged to "continue expanding our product lineup so investors can choose according to market conditions and their own risk preferences."

The Shinhan Paradigm Korea 50 Fund is available for subscription through Shinhan Bank starting Friday, with plans to expand distribution channels going forward.


hajun825@heraldcorp.com