Hanwha Natural Resources Fund, 'Good Good' Amid Inflation and High Oil Prices... Up 25% in 6 Months

Rise in Natural Resources Sector Since Late Last Year Due to Inflation Concerns
Recent High Oil Prices Expected to Boost Corporate Profitability and Dividends

[Asia Economy Reporter Hwang Yoon-joo] Recently, Hanwha Asset Management's 'Hanwha Natural Resources Fund' has shown remarkable performance amid inflation and rising oil prices.

Hanwha Asset Management announced on the 28th that the Hanwha Natural Resources Fund recorded a 6-month return of 25.6%. It achieved returns of 5.20% over 1 month, 14.73% over 3 months, 26.86% over 1 year, and 50.47% over 3 years.

This is attributed to the natural resources sector's significant rise since global inflation concerns emerged in December last year. The recent Russia-Ukraine conflict could disrupt oil supply from Russia, one of the world's top three oil-producing countries, potentially driving oil prices higher. However, this is considered an unexpected event, and the natural resources market has been on an upward trend since global inflation concerns intensified in December last year.

The Hanwha Natural Resources Fund invests 50% each in the energy and materials (mining) sectors. During management, it adjusts investment proportions according to favorable conditions in each industry (energy, materials) to respond to market situations and aim for excess returns.

The fund identifies companies with attractive profit structures while considering ESG factors. In particular, it currently favors companies producing platinum group metals due to increased demand in the renewable energy sector.

Kim Jong-yuk, fund manager at Hanwha Asset Management, stated, "As the fatality rate of the Omicron variant is judged to be low, various lockdown policies are being eased mainly in developed countries, leading to an expected increase in raw material demand," adding, "The natural resources sector is expected to face supply shortages in the future due to limited investment following the oil price slump in 2016."

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