Hyundai Investment Asset Management Achieves Target Return for Goal-Conversion Fund in Just 5 Trading Days

[Asia Economy Reporter Minji Lee] Hyundai Investment Asset Management announced on the 6th that the ‘Premium Focus Target Conversion Type No.1’ fund, established on the 23rd of last month, has achieved its target return of 6%.

A target conversion type fund is a product designed to set a predetermined return rate and realize profits by disposing of assets once the target return is achieved. Most target conversion type funds seek to achieve returns through stock investments.

Calculating from the 24th of last month, when stock inclusion began, this fund invested in stocks for 5 trading days and achieved the target return. Considering that the average stock inclusion ratio during the 5-day investment period was in the mid-70% range, the fund’s stock segment return significantly outperformed the KOSPI increase rate of 6.55% during the same period.

The Premium Focus Target Conversion Type No.1 fund was developed with a focus on the speed of achieving the target. It grants extensive discretion to the fund manager regarding stock selection and inclusion ratio adjustments to achieve the target return as quickly as possible, and performance fees are applied only if the target return is achieved within 6 months after establishment.

Hyundai Investment Asset Management stated, “The strategy of combining large-cap and small-to-mid-cap stocks at a 7 to 3 ratio while targeting IT and cyclical stocks proved effective,” and added, “As a liquidity-driven bull market is expected to continue this year, we will devote our best efforts to market analysis and stock discovery to revive equity funds.”

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