Samsung Asset Management Launches 'Samsung MAN Investment Balance Fund'

Global Diversification in Stocks, Government and Corporate Bonds, and Inflation Hedge Assets

[Asia Economy Reporter Kum Boryeong] A fund that diversifies investments across global stocks, government bonds, corporate bonds, and inflation-hedge assets has been launched.

Samsung Asset Management announced on the 10th that it has launched the global asset allocation fund, 'Samsung MAN Investment Balance Fund.'

This fund is a fund of funds that invests in the 'Target Risk Fund,' the flagship fund of AHL, a system management subsidiary of the UK-based financial group Man Group. The main management objective is to pursue stable returns by flexibly diversifying investments across various assets while managing the fund's volatility below a certain level. It selects highly liquid instruments without regional or national restrictions, including S&P 500 index and Nikkei index futures, US and UK government bond futures, US and European credit derivatives (CDS), and dollar futures.

The target volatility is around 10%. This 10% is allocated equally at 2.5% each to global equity-related products, global bond-related products, corporate bond-related assets, and inflation-hedge assets. For example, if volatility in the global equity-related product group increases from 2.5% to 5%, the investment asset weight is halved to bring the volatility limit back to 2.5%.

As of September last year, Man Group manages KRW 132.6 trillion in assets and has five subsidiaries according to its management methods. Among them, AHL, a subsidiary specialized in system management, was established in 1987 and manages KRW 37.2 trillion in assets with 128 professional management personnel.

This fund is sold through Hana Bank and Hana Financial Investment.

A Samsung Asset Management official explained, "The financial engineering technology developed through industry-academic cooperation between the University of Oxford in the UK and the investee fund manager Man is the source of this fund's risk management system," adding, "It is suitable for medium-risk, medium-return investors as it excels in risk management according to different phases of the financial market."

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