Hanwha Asset Management announced on the 2nd that it will begin raising funds for the 'Hanwha MAGA 2.0 Target Conversion Fund,' which simultaneously pursues profitability and stability through investments in Trump administration beneficiary stocks and short-term U.S. Treasury bonds.
The 'Hanwha MAGA 2.0 Target Conversion Fund' is a bond-mixed fund that invests approximately 40% in overseas stocks expected to benefit from the Trump administration and about 60% in U.S. short-term Treasury bonds with a duration (average recovery period of invested funds) within 2 years. It aims for a target return of around 7%. After achieving the target return, it converts into stable bond assets such as domestic bond-related funds to minimize return volatility, making it a target conversion fund.
In the equity segment, Trump policies are classified into four core themes: △tariff policies and corporate tax cuts △deregulation △power infrastructure △small government. The fund analyzes beneficiary industries and invests in sectors directly affected. Since the U.S. Republican Party achieved a 'Red Sweep' by winning the presidential, Senate, and House elections, thereby controlling both the White House and Congress, the policy execution base has been strengthened, and rapid policy implementation is expected in the early administration period.
Wang Seung-mook, head of Hanwha Asset Management’s overseas equity management team, explained, "In 2025, the U.S. market will be led by sectors benefiting from policy momentum strongly promoted in Trump’s second term. Corporate tax cuts are expected to increase stock valuations, and deregulation is likely to be pursued in various fields such as artificial intelligence (AI), environment, and finance, potentially expanding beneficiary themes and industries diversely."
In the bond segment, the fund invests in U.S. Treasury bonds (duration within 2 years) to defend against interest rate rise risks. Given concerns about inflationary pressure due to the Trump administration’s high tariffs and anti-immigration policies, the fund secures portfolio stability with short-term Treasury bonds that provide stable interest income even during periods of rising interest rates. With a prolonged dollar strength expected, the fund adopts a basic currency open strategy but can implement currency hedging within bond allocation limits in case of sudden exchange rate fluctuations.
Lee Hee-yeon, manager of Hanwha Asset Management’s overseas bond management team, stated, "Key policies of the Trump administration such as tariff imposition, tax cuts, and expanded fiscal spending may increase inflationary pressure and Treasury supply, leading to rising interest rates. Short-term Treasury bonds have low price volatility, allowing defense against interest rate risks, and are suitable as a stable investment during periods of high policy uncertainty under the Trump administration."
Hanwha Asset Management plans to raise funds ahead of U.S. President Trump’s inauguration scheduled for January 20 and to actively manage funds in the early term. The 'Hanwha MAGA 2.0 Target Conversion Fund' is available for subscription through Hanwha Investment & Securities, Kookmin Bank, KB Securities, Hana Securities, Samsung Life Insurance, Eugene Investment & Securities, among others. Fundraising will continue until the 10th of this month, with the fund being established on the 13th.
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