HDC Asset Management Launches BLASH Target Conversion Fund No. 2

[Asia Economy Reporter Minji Lee] HDC Asset Management announced on the 26th that it will launch the 'BLASH Target Conversion Fund No. 2.'

'BLASH' is an acronym for Buy Low And Sell High, encapsulating the fund's strategy of repeatedly buying at low prices and selling at high prices to accumulate trading profits. Since it trades only ETFs that track the KOSPI 200 index, it operates on the concept of buying and selling the entire market, enabling it to cope with difficult stock-specific market conditions.

The HDC BLASH Target Conversion Fund No. 2 is a target conversion fund that converts to a bond-type fund and is managed stably when the fund's net asset value reaches 1,060 KRW, based on Class A with a front-end sales fee. According to regulations, if the target net asset value is reached within six months, the fund will automatically terminate on the first anniversary of the fund's inception. If reached after six months, it will automatically terminate six months from the date the target is reached. However, since there is no redemption fee, investors can redeem the fund individually regardless of whether the target net asset value is reached.

Yoo Seung-min, Head of the Multi-Solution Division, explained, “This fund operates by holding 50% of ETFs tracking the KOSPI 200 index and repeatedly applies a trading strategy of buying when the stock ETF price falls and selling when it rises.” He added, “The trading is based on rules optimized through past data analysis to enhance operational transparency.”

Every time the KOSPI 200 index falls by 3.5 percentage points, the stock ETF proportion increases by 8 percentage points, and every time it rises by 3.5 percentage points, the proportion decreases by 8 percentage points, repeating the strategy of 'buying low and selling high.' Since the fund starts with a 50% stock ETF allocation at inception, if the stock market shows a gradual upward trend, the target achievement time may be accelerated.

This fund is a subscription-type product that accepts subscriptions until the 29th of this month and will be established on the 30th. It is available for subscription through all branches of Suhyup Bank, Hyundai Motor Securities, SK Securities, and through KB Securities' retirement pension, IRP, and pension savings classes.

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