Hanwha Asset Management-JP Morgan "Most Attractive Long-Term Investment Opportunity in the Last 10 Years"

[Asia Economy Reporter Hwang Yoon-joo] JP Morgan (J.P. Morgan Asset Management) has described this year's stock market decline as "the most attractive long-term investment opportunity in the past decade."

Hanwha Asset Management held a press briefing yesterday at its Yeouido headquarters together with JP Morgan, announcing the '2023 Long-Term Capital Market Assumptions (LTCMA)' annual report. JP Morgan's annual report projects risks and returns over the next 10 to 15 years.

At the event, Leon Goldfeld, Head of Asia Pacific Multi-Asset Solutions at JP Morgan, stated, "Despite various market challenges, the fundamental principles of investing remain valid. A portfolio allocation of 60% equities and 40% bonds will provide a solid foundation, and alternative investments for inflation protection and diversification are expected to offer opportunities for additional returns."

The 2023 market outlook was also shared. Kerry Craig, Global Market Strategist at JP Morgan, said, "Inflation next year is expected to decline thanks to improvements in supply chains, but the path remains uncertain. Central banks are likely to pursue a policy closer to a pause rather than a pivot in monetary policy."

Meanwhile, there was also a performance presentation of the 'Hanwha Lifeplus TDF.' The Hanwha Lifeplus TDF's returns were evaluated as relatively defensive during the downturn. Notably, in the first default option approval, all vintages (2020, 2025, 2030, 2035, 2040, 2045, 2050) received approval. In terms of the number of portfolio approvals, it ranked third among all asset managers.

Byun Jae-il, Team Leader of WM Solutions Management at Hanwha Asset Management, explained, "The effect of the currency hedge strategy was effective in defending the KRW-converted returns against the dollar appreciation."

Currently, stock prices reflect a mild recession. If the recession worsens next year, a decline in stock prices and a rise in bond prices can be expected.

Team Leader Byun said, "If the recession is shallower than expected or can be avoided, scenarios of rising stock and bond prices can be anticipated. In conclusion, bonds are attractive in all scenarios, and traditional asset allocation strategies will ultimately remain valid."

Presenters at the briefing included Choi Young-jin, Executive Director of Hanwha Asset Management; Byun Jae-il, Team Leader of WM Solutions Management at Hanwha Asset Management; Leon Goldfeld, Head of Asia Pacific Multi-Asset Solutions at JP Morgan; Kerry Craig, Global Market Strategist at JP Morgan; and Jeff Wang, Multi-Asset Solutions Investment Specialist at JP Morgan.

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