Hanwha Asset Management "Hanwha Global Macro Quant EMP... Optimal for Retirement Pension BF Type"

Hanwha Asset Management announced on the 22nd that the 'Hanwha Global Macro Quant EMP' fund is the most suitable product for the retirement pension Balanced Fund type. It allocates stocks and bonds in a 6 to 4 ratio to control maximum loss rate and volatility. This is because it executes a macro quant strategy in collaboration with BCA Research, the world's largest independent research institution, and NDR, an SEC-registered advisory firm.

At a seminar jointly hosted by Hanwha Asset Management and BCA Research, Youngjin Choi, Head of Strategic Business Division at Hanwha Asset Management, stated, "As of the end of June, the fund's performance has been 16.4% since inception and 8.5% year-to-date, showing favorable returns compared to funds of the same type, steadily building a stable track record."

Hanwha Asset Management launched the 'Hanwha Global Macro Quant EMP' fund in April last year in collaboration with BCA Research and NDR. The EMP fund invests in multiple Exchange-Traded Funds (ETFs) to maximize the effect of diversified investment. This fund is the first fund for which NDR provided macro quant advisory services in Asia and is currently seeking default option approval from the Ministry of Employment and Labor.

The fund extracts key indicators that can be used for market forecasting through interviews with senior strategists at BCA Research, then NDR processes these indicators to build the final macro quant model. Hanwha Asset Management incorporates appropriate ETFs through tactical asset allocation based on the model portfolio provided monthly by NDR to respond to market changes.

Seong Nakchan, the fund's lead portfolio manager and manager of the Pension Solutions Management Team at Hanwha Asset Management, said, "This fund uses a quantitative investment method called the macro quant strategy to eliminate human subjective judgment and minimize unnecessary transaction costs and losses. It operates 100% rule-based by scoring assets, countries, and sectors based on approximately 1,500 economic data points."

Additionally, the fund employs a 100% currency hedging strategy for overseas bonds, while it basically adopts a currency open investment strategy for overseas stocks. This strategy leverages the tendency for the value of the US dollar, the key currency, to rise when the stock market declines, thereby enhancing risk-adjusted returns.

Recently, BCA upgraded the macro quant model to version 2.0 for better performance. Peter Berezin, Chief Strategist at BCA Research, emphasized, "The macro quant model was independently developed by BCA Research and will accurately analyze the market and provide optimal asset allocation solutions. Even in future volatile market conditions, it will demonstrate stable mid- to long-term performance through appropriate allocation between stocks and bonds."