A new fund focused on investing in leading domestic companies committed to shareholder returns has been launched.
DaeShin Asset Management announced on October 6 that it will introduce the 'DaeShin Shareholder Return High-Dividend Fund,' which selectively invests in companies with significant shareholder return policies, including dividends and share buybacks, while maintaining relatively low stock prices.
This fund is an equity fund that analyzes both a company's shareholder return policies and stock price levels to invest in stocks with high investment appeal. The key investment indicators are 'shareholder return rate' and 'shareholder return yield.'
The shareholder return rate indicates the proportion of a company's profits returned to shareholders through dividends, share buybacks, and cancellations. By adding the shareholder return yield, the fund assesses whether the scale of shareholder returns is attractive compared to current stock prices.
If the stock price of a holding rises significantly and the shareholder return rate decreases, the fund will realize profits through selling. Conversely, if the stock price adjusts and the relative value of shareholder returns increases, the fund will buy more shares, managing the portfolio accordingly.
The sustainability of shareholder returns is also a crucial factor in decision-making. The fund prioritizes companies that consistently implement shareholder return policies rather than those with one-time payouts. It also considers stable cash generation and profit improvement to identify companies capable of maintaining shareholder returns.
According to DaeShin Asset Management, the projected shareholder return rate for domestic companies in 2026 is 31%, which is about half of that in the United States (70%) and Japan (67%). Given the lower scale of shareholder returns compared to developed countries, there is significant potential for reevaluation of corporate value in the Korean capital market as the trend toward enhancing shareholder returns strengthens.
This product is a public offering that invests over 60% in stocks, with the establishment date set for October 6. It will be available for subscription through DaeShin Securities and ten other sales companies, with plans for gradual expansion. More details about the product can be found on the DaeShin Asset Management website.
Lee Jae-woo, Executive Director of the Marketing Division at DaeShin Asset Management, stated, "The market views not only a company's profits but also how it shares performance with shareholders as a key indicator of corporate value. This fund's distinction lies in evaluating how much is returned to shareholders beyond just dividends and how attractive that value is at current stock prices."
* This article has been translated by AI.
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