Heungkuk Asset Management announced on the 11th the launch of the ‘Heungkuk Didim Pension Plus’ fund, specialized for retirement pensions.
The ‘Heungkuk Didim Pension Plus’ fund is tailored for retirement pension management, where securing steady cash flow is crucial. It features the application of asset allocation processes from major pension funds to achieve long-term returns while minimizing volatility.
Heungkuk Asset Management plans to utilize data-driven investment techniques to select optimal investment targets among various global assets. Through this, the fund aims to achieve an annual target return of around 7% (inflation rate + α).
The ‘Heungkuk Didim Pension Plus’ fund will be managed by actively adjusting allocations between income strategies and capital gains strategies to secure steady cash flow and capital gains based on low volatility.
Risk assets such as stocks will be managed with foreign exchange exposure, as the cost of hedging may offset the hedging effect, and risk assets have a negative correlation with the KRW-USD exchange rate. The foreign exchange exposure strategy is expected to naturally reduce exchange rate volatility. In cases where hedging is necessary due to sudden changes in the interest rate environment, temporary hedging strategies will be implemented to manage volatility.
Meanwhile, Heungkuk Asset Management secured an initial seed capital of 20 billion KRW from its parent group affiliates to ensure stable fund management.
A representative from Heungkuk Asset Management stated, “As of the end of Q2 this year, about 90% of the entire retirement pension market in Korea is managed with low-yield principal-guaranteed products that do not keep up with inflation.” He added, “We will focus our capabilities to provide pension investors, who find deposit interest rates unsatisfactory and prefer low volatility, with returns exceeding the inflation rate through the ‘Heungkuk Didim Pension Plus’ fund.”
The ‘Heungkuk Didim Pension Plus’ fund can be subscribed to through Mirae Asset Securities, Samsung Securities, Woori Investment & Securities, Hyundai Motor Securities, and others.
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