Hanwha Asset Management Launches 'US Interest Rate Tailored Solution Fund'

Hanwha Asset Management announced on the 9th the launch of its interest rate fluctuation optimized bond investment solution, ‘Hanwha US Interest Rate Customized Solution Securities Investment Trust (H)(UH)(USD)’.

The Hanwha US Interest Rate Customized Solution Fund is a fund that timely switches between floating rate bonds and fixed rate bonds when there is a shift in U.S. monetary policy stance, aiming for stable returns regardless of interest rate rises or falls. During periods of rising interest rates, it benefits from the interest rate expansion effect through floating rate bonds. During falling periods, it seeks interest income and capital gains from bond price increases through fixed rate bonds.

For floating rate bonds, the fund utilizes bonds that provide a spread over the SOFR (Secured Overnight Financing Rate), a one-business-day ultra-short-term rate secured by U.S. Treasury securities. Since price declines are limited compared to fixed rate bonds, it can pursue stable interest income.

Additionally, it manages short-term high-quality bonds with an international credit rating of A0 or higher and maturities within three years, ensuring relative stability. Furthermore, in the event of foreign exchange market imbalances such as dollar liquidity shortages, it responds to risks and seeks excess returns by implementing currency exchange strategies simultaneously with purchasing Korean government bonds and bank bonds.

Lee Hee-yeon, Head of Overseas Bond Management Team 1, stated, “We launched this product to provide an optimized solution for various interest rate environments, regardless of whether rates rise or fall,” adding, “Investors seeking stable bond returns regardless of monetary policy stance should consider the US Interest Rate Customized Solution Fund, which flexibly responds to interest rate changes.”

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