Daishin Asset Management said on the 4th it will launch the Daishin G.O. Korea target-conversion type securities investment trust, which manages domestic stocks and Treasury bonds in tandem.
The product is managed with the goal of achieving a base price of 1,070 won (7%, before tax and after A-class fee deduction) by diversifying investments in promising domestic stocks and Treasury bonds. It controls volatility by keeping the stock weight under 50% and disperses price risk through a partitioning trading strategy.
The bond weight is kept at 50% or more and is managed around 3-, 5-, and 10-year Treasury benchmarks. If rates are expected to fall, it extends duration; if a rise is expected, it shortens duration, employing a flexible strategy.
When the target revenue is reached, all stocks and medium- to long-term Treasury bonds are sold within five business days. Afterward, it plans to invest 60% or more in short-term Treasury bonds with a remaining maturity within 12 months and to secure liquidity and stability by concurrently using short-term financial products such as government and public bond-type MMFs and RPs.
If the fund fails to reach the target, it will be managed for up to three years, and if the target is reached within six months after the fund's inception date, it will be liquidated within one year from the inception date; if reached after six months, it will be liquidated six months after the conversion date. There is no redemption fee, and redemption proceeds are paid within three to five business days depending on the time of the request.
Lee Jae-u, head of marketing at Daishin Asset Management, said, "This fund combines growth investing centered on leading corporations, a high-dividend strategy, and Treasury management to pursue both upside potential and defense," adding, "Through a target-conversion structure, it will aim for stable revenue management even in volatile phases."