Hanwha Asset Management's 'Hanwha Dynamic Focused Buy EMP' Achieves 7% Target Return Ahead of Schedule

Portfolio Shifted to Bonds After Achieving Target Return
Half Invested in Thematic and Korean Short-Term Bond ETFs
Increased Equity Allocation During Downturns, Partial Sales During Upturns

Hanwha Asset Management announced on April 28 that its 'Hanwha Dynamic Focused Buy EMP' fund has achieved its target return of 7%.

According to Hanwha Asset Management, the 'Hanwha Dynamic Focused Buy EMP' fund reached its target return with a cumulative return of 7.13% for the A Class as of April 27. This was achieved in about one and a half months since its launch on March 9. The total assets under management amount to 55.6 billion won.

This fund is a target maturity fund that invests equally in domestic listed theme ETFs expected to lead the future market and Korean short-term bond ETFs. Upon achieving its 7% target return, the portfolio is shifted primarily to short-term bond ETFs.

A Hanwha Asset Management representative explained, "The early achievement of the target return was driven by the preemptive selection of leading sectors and a concentrated investment strategy based on a 'bottom-up' investment approach." The fund focuses its investments in about 10 to 15 major theme ETFs, with key investment areas including Korea’s leading indices, semiconductors, physical AI, power, and K-defense.

Themes are selected using a 'bottom-up' approach based on individual stock analysis, including financial statements, growth outlook, investment status, and stock price trends. According to Hanwha Asset Management, in the case of thematic ETFs, the top 3 to 8 holdings by weight often have a significant impact on performance, which allows for ETF selection based on specific stock analysis.

During the early stages of the fund, in March and April, when domestic market volatility was high, the fund pursued a flexible management strategy, aggressively increasing its equity allocation during downturns and realizing profits through partial sales during upturns.

Wang Seungmook, Head of Overseas Equity Management at Hanwha Asset Management, stated, "Many investors suffer losses by investing in overheated themes. In contrast, by preemptively discovering leading sectors through a bottom-up approach that starts with stock analysis, it is possible to significantly reduce the opportunity cost that arises from buying late or waiting for a rebound in themes with weakening momentum, during which funds may be tied up for extended periods."

Choi Youngjin, Chief Marketing Officer (CMO) of Hanwha Asset Management, said, "The ability to quickly identify and proactively invest in leading sectors based on in-depth research, while also defending against interest rate volatility through short-term bond ETFs, played a major role during the recent period of extreme market volatility." He added, "Going forward, we will continue to contribute to increasing customer value by leveraging our know-how in successfully managing target maturity and public active funds."

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