Shinhan Securities launches value fund targeting undervalued stocks

Shinhan Securities announced Tuesday it will offer the Shinyoung K Pure Value fund, which invests in stocks trading below their intrinsic value.

The fund targets companies that have received relatively little market attention or whose corporate value has not been fully reflected in their share price. Rather than tracking short-term price movements, the strategy focuses on a company's fundamental value and holds positions until the share price reaches fair value.

Investment targets include quality stocks undervalued relative to their asset value, value stocks with strong cash-generating ability that trade below their earnings potential, and companies with active shareholder return policies. The fund considers not only sales and profit but also the potential for expanded shareholder returns and improved corporate value going forward.

To prevent concentration in any single stock, each holding is capped at 10% of the portfolio. The fund constructs its portfolio by weighing the degree of undervaluation alongside trading volume and other factors.

"As passive investment and sector concentration amplify market volatility, attention to value stocks trading below their intrinsic value is growing," a Shinhan Securities official said. "This is a product that selects investment targets by considering not only a company's asset value and earnings power but also its shareholder return policy and potential for corporate value improvement."

Shinhan Securities also announced Oct. 27 that it would offer the Eugene Smart Selection Mixed Asset Investment Trust, a publicly offered fund that invests more than 50% of its assets in private equity funds and spreads exposure across the investment strategies of multiple private equity managers. The fund's primary investment targets are private equity funds managed by Bogo Fund Asset Management, W Asset Management, Life Asset Management and C Square Asset Management.