Hanwha Green Hero Fund with AI Achieves 102% Return in Six Months

Hanwha Asset Management announced on November 10 that the Hanwha Green Hero Fund has achieved a return of over 100% in the past six months.

According to Korea Fund Ratings Fund Square, as of November 6, the recent returns of the Hanwha Green Hero Fund were 102.12% over six months, 38.40% over three months, and 20.68% over one month. The fund's performance has been boosted by the rise of artificial intelligence (AI) infrastructure themes, including AI and power equipment.

The Hanwha Green Hero Fund invests in energy transition for climate crisis response and in power grids, which are core infrastructure for artificial intelligence. Unlike other funds with similar themes, which are generally composed of companies related to eco-friendly and renewable energy, the Green Hero Fund also broadly includes companies in AI, energy storage systems (ESS), and power equipment such as those represented by the semiconductor sector and grid (power network).

As of September 30, the sector allocation was: grid 29%, artificial intelligence 12%, electric vehicles 15%, batteries 2%, solar power 15%, wind power 12%, and hydrogen 7%. Major holdings include Tesla, Hanzhong NCS, First Solar, Bloom Energy, TSMC, and Hyosung Heavy Industries.

Artificial intelligence plays a significant role in the decarbonization of power through renewable energy resource optimization and smart monitoring. In addition, AI is utilized to improve the operational efficiency of ESS power grids, which are essential for the electrification of renewable energy.

AI is also essential for promoting decarbonization technologies such as the transition to decarbonized transportation through autonomous electric vehicles, next-generation battery development, alternative meats, and carbon capture. According to PwC's analysis, the amount of greenhouse gases that can be reduced in the energy sector by utilizing AI is estimated to reach 1.5 Gt by 2030.

AI innovation requires enormous amounts of electricity. Recently, wind and solar power have been the main energy sources meeting the rapidly increasing electricity demand. In particular, in the United States, wind and solar power account for 70-80% of electricity supply.

Eun Kihwan, domestic equity portfolio manager, stated, "The sectors included in the fund-renewable energy, power infrastructure, artificial intelligence, electric vehicles, and batteries-are all organically interconnected."

He added, "From the narrow issue of AI-driven power shortages to the broader context of climate crisis response, the narrative connecting renewable energy-based power generation, power transmission and distribution via grids, ESS, electric vehicles, and artificial intelligence is expected to remain valid over the long term."

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