Hana Financial Investment Launches 'Hana THE ONE Target Return Lab'

Convertible Global Asset Allocation Wrap That Converts to Cash Equivalents Upon Reaching Target Return
Diversified Investment in Global Equity ETFs and U.S. Bond ETFs

[Asia Economy Reporter Eunmo Koo] Hana Financial Investment announced on the 8th that it has launched the ‘Hana THE ONE Target Return Lab,’ which pursues global asset allocation by diversifying investments in global stock exchange-traded funds (ETFs) and U.S. bond ETFs.

The ‘Hana THE ONE Target Return Lab’ primarily invests in ETFs listed on major global exchanges such as the U.S., repurchase agreements (RPs), and cash-equivalent assets. It is characterized by combining asset allocation modeling based on macro indicators with momentum strategies.

The ‘Hana THE ONE Target Return Lab’ sets an appropriate target conversion return rate according to market conditions in consultation with clients and operates with a three-year maturity. If 50% of the target conversion return rate is reached within six months from the subscription date, the managed assets are redeemed early in cash. If the early redemption conditions are not met, the designated conversion return rate must be achieved by maturity to convert to cash. Early conversion is evaluated based on simple returns, and thereafter, conversion is decided based on annualized returns until maturity. Additionally, if a loss of 10% occurs regardless of the period, all assets are converted to cash equivalents to limit the loss.

Kwon Chang-jin, Head of Lab Management at Hana Financial Investment, said, “In highly volatile market conditions, customers increasingly prefer investments that secure stability by immediately cashing out once the targeted return is achieved. We expect the Hana THE ONE Target Return Lab to be the optimal product that meets customers’ demands while investing in global assets.”

The ‘Hana THE ONE Target Return Lab’ requires a minimum subscription of 20 million KRW, with additional minimum deposits also set at 20 million KRW. Partial withdrawals in cash are possible as long as the minimum subscription amount is not breached. Subscriptions must be paid in Korean won or the currency of the investment target country, and a front-loaded fee of 1.2% of the subscription amount is charged.

When the target conversion return rate is exceeded, the operation ends, or upon maturity, the operation is terminated. Customers can request early termination at any time, but termination fees will apply. Upon early termination, the remaining portion of the prepaid fee, minus the early termination fee corresponding to the remaining period, will be refunded.

Taxation follows the system for overseas stock trading and dividends. Since no separate currency hedging is performed, exposure to exchange rates exists, so exchange rates should be considered when investing. This is a discretionary investment contract managed and operated per customer account, and past returns do not guarantee future returns; principal loss may occur depending on the operation results.

This content was produced with the assistance of AI translation services.