First community profit-sharing fund in asset management industry

Energy infrastructure investment diversified

Shinhan Asset Management headquarters [Shinhan Asset Management]
Shinhan Asset Management headquarters [Shinhan Asset Management]

Shinhan Asset Management said Friday it has formed an energy infrastructure blind fund totaling about 500 billion won ($374 million), targeting community-based renewable energy projects and domestic energy infrastructure.

The first vehicle — the Shinhan Community Profit-Sharing Private Special Asset Investment Trust No. 1 — will supply capital to local residents and community cooperatives participating in large-scale renewable energy generation projects and distribute power-generation revenue with those communities throughout the operational life of each plant.

It is the first fund in the domestic asset management industry dedicated exclusively to community participation, and has secured a large-scale offshore wind community participation project as its initial investment target.

The second vehicle — the Shinhan Energy Infrastructure Growth Private Special Asset Investment Trust No. 1 — will provide financing across domestic renewable energy and power-grid infrastructure through a combination of senior and subordinated loans and equity investment. The fund covers the full project lifecycle from development through construction and operations, and will also consider investments in publicly led projects by state-owned power companies and policy finance institutions, as well as projects linked to the national growth fund.

This year, Shinhan Asset Management has continued to build out its carbon-neutrality and energy-transition portfolio through a series of initiatives: launching a carbon credit fund, forming a carbon-neutral port infrastructure fund, being selected as an operator for an AI-powered ESS project, and co-developing publicly led solar projects.

Lee Ho-jun, executive vice president of Shinhan Asset Management's infrastructure investment division, said the community profit-sharing fund "is meaningful in that it connects energy transition with regional co-prosperity by allowing local residents and institutional investors to share in the returns from renewable energy generation projects." Lee added that the firm would "continue to identify investment opportunities across diverse areas — including carbon credits, port carbon neutrality and transmission and distribution networks — and expand infrastructure investment that supports the energy transition."

Shinhan Asset Management has also been posting strong returns across a range of products. The SOL US Dividend Dow Jones (H) ETF ranked first among US dividend equity ETFs listed in Korea, with three-month, six-month and one-year returns of 3.72 percent, 10.83 percent and 26.36 percent, respectively, as of Wednesday. The SOL All-Solid-State Battery & Silicon Anode ETF also topped all equity ETFs listed in Korea with a three-month return of 22.76 percent as of Oct. 16.


yuni@heraldcorp.com