'I Invest in Blackstone and KKR'... Hanwha Asset Management Lists 'ARIRANG US Alternative Investment Top 10 MV' ETF
Investment in Major US Listed Alternative Investment Firms Including Carlyle
Over 75% of Revenue Composed of Alternative Assets
Expectations for Asset Diversification, Performance Differentiation, and Inflation Hedge
[Asia Economy Reporter Hwang Yoon-joo] Hanwha Asset Management is launching the world's first exchange-traded fund (ETF) that invests in large U.S. companies composed of alternative assets. During a period when recession concerns are spreading and inflation persists, diversifying portfolios through alternative asset investments can yield more stable returns than traditional assets.
Hanwha Asset Management announced on the 11th that it has listed the 'ARIRANG US Alternative Investment Top10 MV' (ticker: 426410) ETF on the Korea Exchange.
The 'ARIRANG US Alternative Investment Top10 MV ETF' invests in 10 large U.S.-listed companies whose sales or assets under management consist of at least 75% alternative assets.
The constituent companies include many global alternative investment specialists listed in the U.S., such as the world's top three private equity firms ▲Blackstone ▲KKR ▲The Carlyle Group ▲Apollo Global Management ▲Brookfield Asset Management.
The underlying index is the MVIS (MV Index Solutions) BlueStar Top 10 US Listed Alternative Asset Managers Index, which ranks the top 10 U.S.-listed alternative asset managers.
Hanwha Asset Management signed a memorandum of understanding (MOU) with MVIS in May last year, granting it exclusive rights to supply MVIS's thematic indices for the next five years. This ETF is the third product created through collaboration between Hanwha Asset Management and MVIS.
Alternative investment refers to investing in assets other than traditional investment assets such as stocks and bonds, including private equity (PE), real estate, infrastructure, commodities, and other tangible assets. The 'ARIRANG US Alternative Investment Top10 MV' is the first ETF to invest broadly in alternative assets, including private equity, venture capital (VC), and business development companies (BDC).
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Due to the relatively large investment amounts required for illiquid assets, alternative investments have traditionally been dominated by high-net-worth individuals and institutional investors. Therefore, Hanwha Asset Management explains that the most effective strategy for individual investors to engage in alternative investments is to invest in alternative asset managers through ETFs listed on the stock market.
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