Shinhan Investment & Securities to offer ‘Shinyoung K Pure Value’ fund targeting undervalued value stocks

[Financial News] Shinhan Investment & Securities is launching a value-stock fund that selects and invests in stocks whose prices are undervalued relative to their intrinsic value.
Rather than focusing on short-term market trends or the popularity of particular sectors, the fund comprehensively assesses companies’ asset value, earnings-generating capacity and shareholder-return policies, seeking a long-term revaluation of their worth.
Shinhan Investment & Securities announced on the 10th that it would offer the ‘Shinyoung K Pure Value’ fund. The fund adopts an investment strategy focused on companies’ intrinsic value rather than short-term market movements in share prices. It seeks investment returns by resolving undervaluation, identifying stocks that attract relatively little market attention or whose corporate value is not fully reflected in their share prices, then holding them until they reach fair value.
The fund divides its investment targets into three broad types: high-quality asset-value stocks undervalued relative to their assets; earnings-based value stocks that generate substantial cash but are rated below what the quality of their earnings warrants; and companies that actively implement shareholder-return policies.
It selects investments by taking into account not only companies’ fundamentals, such as sales and earnings, but also the potential to expand shareholder returns and enhance corporate value in the future. Rather than simply including stocks with low price-to-earnings (P/E) or price-to-book (P/B) ratios, the strategy focuses on their potential for actual improvement in corporate value.
The portfolio strategy emphasizes limiting concentration in any one stock. It considers each company’s degree of undervaluation, trading volume and other factors when building the portfolio, and caps the allocation to any single stock at 10% to reduce concentration in a handful of large-cap stocks and promote diversification.
A Shinhan Investment & Securities representative explained, “As market volatility grows amid concentration in passive investing and specific sectors, interest is increasing in value stocks that are undervalued relative to their intrinsic worth.” The representative added, “This fund selects investments by considering not only companies’ asset value and earnings-generating capacity, but also their shareholder-return policies and potential to enhance corporate value.”
The Shinyoung K Pure Value Fund is available through Shinhan Investment & Securities’ branches nationwide and its mobile channels. Investors can also invest through pension savings and retirement pension accounts. However, investment principal may be lost depending on the fund’s performance.
[email protected] Kang Jung-mo Reporter