"Even if the Market Shakes, Retirement Funds Remain Stable"…Hanwha Asset Management Didim Fund 'Launch'

"The core value we focused on when creating the Didim Fund was 'to help investors steadily accumulate their retirement funds securely, even when the financial market is volatile."

Cha Deok-yeong, Head of Pension Solution Business Division at Hanwha Asset Management. Photo by Yoo Hyun-seok

Cha Deok-young, Head of the Pension Solutions Division at Hanwha Asset Management, stated this at the Didim Fund launch briefing held at the Korea Financial Investment Association on the 15th.

The 'Hanwha Didim Stable Growth Asset Allocation' fund is an asset allocation type fund categorized as a 'BF Fund (Balanced Fund),' which is one of the fund types eligible for designation under the default option (pre-designated operation system). It aims to be a risk-neutral fund that pursues performance better than the long-term average of 6%, which is the sum of inflation rate and gross domestic product (GDP) growth rate, enabling investors to accumulate long-term capital. The product was launched based on the premise that to beat inflation, it is necessary to enjoy asset value appreciation from economic growth and defend against currency value depreciation caused by inflation. Simulation results showed a mock return of 6.84% over the past 10 years.

The fund emphasizes the investment strategy of the 'All Weather Portfolio,' founded by Ray Dalio, the founder of Bridgewater Associates, the world's largest hedge fund. It focuses on achieving a higher level of diversification effect through more precise correlation analysis using macroeconomic indicators (Macro factors). This allows the construction of a stable portfolio despite changes in economic cycles, providing long-term growth solutions for retirement pension investors.

Head Cha said, "Hanwha Asset Management's Didim Fund is pursuing an operational strategy that seeks ways to slightly improve the All Weather Portfolio and apply those methods to actual management strategies," adding, "We will build a stable portfolio that is resilient to economic cycle changes by enhancing diversification effects through precise analysis of correlations between assets."

The 'Hanwha Didim Stable Growth Asset Allocation' fund pursues currency hedging strategies tailored to the characteristics of each asset. For stock-related assets, which experience volatility reduction effects when currency exposure is open, a currency open strategy is used to improve performance relative to long-term risk. Conversely, for foreign currency-denominated bond-related assets, which experience volatility reduction effects when currency hedging is applied, more than 60% currency hedging is executed. Currency hedging strategies are applied according to the characteristics of each asset.

Head Cha stated, "There are about 15 assets in the portfolio, but we monitor more than 50 assets," and added, "We analyze the impact of each asset quarterly, monitor them, and reflect this in building the correlation portfolio."

Hanwha Asset Management plans to continuously develop the Didim Fund to help ensure a secure retirement. He emphasized, "It took more than eight months to develop the Didim Fund, and we will continue to improve it," adding, "If you are looking for a pension solution that helps you prepare securely for retirement, the Hanwha Didim Stable Growth Asset Allocation Fund will be a good choice."