Daishin Asset Management launches 'Daishin US Long-Term Treasury Balance' fund

Daishin Asset Management is launching a new fund that invests in U.S. Treasury and corporate bonds.

On the 31st, Daishin Asset Management announced the launch of the "Daishin U.S. Long-Term Treasury Balanced Fund," which invests in U.S. long-term Treasury ETFs (exchange-traded funds) with a remaining maturity of over 10 years and U.S. high-yield bond ETFs.

Provided by Daesin Asset Management

This fund aims to generate interest income and capital gains through a flexible management strategy amid interest rate volatility. During periods of falling interest rates, it increases the allocation to U.S. long-term Treasury ETFs to maximize capital gains, while during periods of stable or rising interest rates, it raises the investment proportion in U.S. high-yield bond ETFs to reduce capital losses and increase interest income.

At the initial setup of the fund, 60% will be invested in U.S. long-term Treasury ETFs and about 35% in U.S. high-yield bond ETFs. The investment proportions will be adjusted according to market conditions and interest rate changes.

The high-yield bond ETFs primarily invest in bonds rated B to BB. Investing through ETFs allows for targeting high interest income while diversifying across more than 1,800 bonds, thereby reducing the overall portfolio risk.

Currency hedging will be flexibly adjusted depending on market conditions. The strategy aims to enhance returns by leveraging currency gains and reducing currency hedge costs.

The "Daishin U.S. Long-Term Treasury Balanced Fund" will be available for purchase starting the 31st through Daishin Securities and Korea Investment & Securities. The total fees range from 0.255% to 0.895% annually. There is no redemption fee.

Lee Jae-woo, Head of Marketing at Daishin Asset Management, said, "Recently, the U.S. market interest rates have shown high volatility, making it difficult to generate returns through bond investments. This fund, which actively adjusts investment proportions based on professional analysis, is expected to provide long-term returns."

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