NH Amundi Asset Management Launches 'Global Alternative Investment Income EMP'

[Asia Economy Reporter Eunmo Koo] NH-Amundi Asset Management announced on the 7th that it will launch the ‘NH-Amundi Global Alternative Investment Income EMP’ to pursue dividend and income returns in response to the global ultra-low interest rate era.

The NH-Amundi Global Alternative Investment Income EMP fund invests in exchange-traded funds (ETFs) of alternative investment assets worldwide that generate income such as dividends and interest, and it is an ETF asset allocation fund that reallocates assets according to predefined economic phases.

Unlike existing income funds that mainly invest in high-dividend stocks or bonds, this fund is differentiated by investing in traditional alternative assets such as real estate and infrastructure. It primarily invests in assets expected to generate dividend and income returns, such as global listed infrastructure ETFs and global REITs ETFs. Additionally, it invests the income generated from dividends and other income of the assets invested by the fund into low-volatility preferred stock ETFs to pursue stable and continuous returns.

The proportion of investment assets is readjusted according to economic phase indicators independently defined in advance by NH-Amundi Asset Management. While primarily investing in highly stable infrastructure ETFs, the proportion of REITs ETFs, which are sensitive to economic cycles, is flexibly adjusted. NH-Amundi Asset Management explained, “In the economic expansion phase, the proportion of REITs ETFs is increased, and when entering an economic downturn phase, it is replaced with U.S. long-term bond ETFs and gold ETFs. When the downturn is judged to be over, the allocation is adjusted back to the initial investment proportions to reduce volatility.”

This fund is an EMP (ETF Managed Portfolio) product that selects and holds ETFs. Through asset allocation, it enhances diversification effects and reduces volatility risk. By utilizing highly liquid ETFs, investors can diversify their investments in global alternative assets such as infrastructure and real estate with small amounts.

Moon Young-sik, Executive Vice President and Chief Marketing Officer (CMO) of NH-Amundi Asset Management, said, “Demand for alternative investments, which can expect long-term stable returns in the global ultra-low interest rate era, is increasing. Since it enhances diversification effects with stocks and bonds and uses ETFs that offset the low liquidity disadvantage of global alternative assets, it will be a useful product for individual investors.”

The NH-Amundi Global Alternative Investment Income EMP can be subscribed through nationwide branches or internet websites of NH Nonghyup Bank, NH Investment & Securities, Yuanta Securities, and Eugene Investment & Securities, and plans to gradually expand sales channels starting with Hana Financial Investment later this month.

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