VI Asset Management Company Launches Goal-Conversion Fund Balancing Yield and Stability

VI Asset Management launched on the 27th a target conversion fund designed to hold both stocks and bonds, aiming to balance return potential with stability. The fund’s structure is such that it allocates part of its investments to companies with steady performance to pursue income opportunities, while allocating about half of its assets to relatively safer bonds such as government bonds and stable currency bonds.

The product launched this time is titled “VI Performance Focus Target Conversion Securities Investment Trust No. 1.” The core of its operation is that it invests less than 50% of its net assets in representative companies from core industries that lead the market; the remaining approximately 50% is allocated to high-quality short- and mid-term bonds. Typically, hybrid bond products of this type are designed to meet the needs of investors who want lower volatility than stock funds while also expecting returns higher than deposit interest rates.

Target conversion is also a feature of this product. When the fund’s benchmark price reaches 1,060 won (based on Class A shares), its asset allocation shifts from the prior stocks- and bonds-based operation to focusing on domestic short-term bonds and ultra-short-term bond funds, money market funds, and liquidity assets. This can be understood as, after achieving a certain level of target return, the product aims to reduce risk and respond more steadily to redemption demand.

The product is set up as a unit-type public fund. The characteristic of a unit-type public fund is that after the specified subscription period ends, it no longer accepts additional funds, making it easier to establish an operating strategy based on the initially raised capital. The subscription period is from April 27 to May 8, and the establishment date is May 11. Investors may subscribe through major sales institutions such as Shinhan Bank, Kyobo Securities, IM Securities, and others.

In recent times, investment tendencies in the financial markets have increased, with investors paying more attention to both the direction of interest rates and stock market volatility. Against this backdrop, interest in hybrid products that focus neither exclusively on stocks nor exclusively on bonds has continued to rise. In this environment, the product enters the market in the form of combining proven corporate investment with safe assets. If, in the future, investment demand that emphasizes volatility management and achieving target returns continues to exist, this trend may lead to further increases in similar structured hybrid target conversion products.