Shinhan Investment & Securities to Sell Public Fund Diversifying Across Private Funds

[Financial News] Shinhan Investment & Securities is launching a public fund that diversifies investments across the strategies of multiple private fund managers. The aim is to improve retail investors’ access to private fund investments by using a range of strategies, including innovative growth stocks, value stocks and event-driven strategies. Shinhan Investment & Securities said on the 27th that it would sell the Eugene Smart Selection Mixed Asset Investment Trust (Private Fund Fund-of-Funds).
This is a publicly offered private fund fund-of-funds that invests more than 50% of its assets in collective investment securities issued by general private collective investment vehicles. It diversifies its investment strategies by investing in private funds that use a range of assets, including domestic and overseas stocks and bonds.
A key feature of publicly offered private fund fund-of-funds is that they allow retail investors to access private fund strategies that are otherwise difficult to reach directly, through a publicly offered fund. As demand for alternative investments has diversified in recent years, this approach has attracted attention for enabling investors to access the strategies of multiple asset managers through a single product.
Eugene Asset Management Co., Ltd. will manage the fund. It plans to select the private funds for investment through quantitative and qualitative assessments that take into account investment performance and risk factors, and to continue monitoring performance, risk levels, major holdings and management status after investment.
The fund will primarily invest in general private funds managed by Bogo Fund Asset Management, W Asset Management, Life Asset Management, C Square Asset Management and others.
By using different investment approaches—including investments in innovative growth stocks, value-stock and shareholder-return strategies, event-driven strategies and multi-strategy approaches—the fund seeks to reduce concentration in any one strategy and diversify its portfolio. The funds selected for investment may vary depending on market conditions and management decisions.
Depending on market conditions, the fund plans to include some publicly offered bond funds for liquidity management. However, redemptions may be restricted depending on redemption conditions for the private funds or market conditions, so investors should also be mindful of liquidity risk.
A Shinhan Investment & Securities representative said, “As investors’ demand for alternative investments has diversified in recent years, this product offers a convenient way to access the investment expertise of multiple private fund managers through a single publicly offered fund.” The representative added, “A key feature is that diversifying across managers’ strategies reduces concentration in any one investment strategy and provides access to a range of investment opportunities.”
This is a performance-based financial investment product, and investors may lose their principal depending on the fund’s performance. As it involves risks associated with private fund investments, fund-of-funds investments and liquidity, investors should review the prospectus and product disclosure document before investing.

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