Hanwha Asset Management's K-Defense Shipbuilding Nuclear Power Fund Surpasses Double-Digit Returns

Hanwha Asset Management announced on September 26 that the return on its "Hanwha K-Defense Shipbuilding Nuclear Power" fund, which allows simultaneous investment in the next-generation three core industries-shipbuilding, defense, and nuclear power plants-has surpassed double digits.

According to financial information provider FnGuide, as of the previous day, the return since the launch of the "Hanwha K-Defense Shipbuilding Nuclear Power" fund stands at 11.24%. This record was achieved in just 29 trading days since its launch on August 14.

The Hanwha K-Defense Shipbuilding Nuclear Power fund selects the top five companies by market capitalization in each of the defense, shipbuilding, and nuclear power sectors, allocating 40%, 30%, and 30% of the portfolio respectively. By diversifying investments, the fund seeks to achieve more stable returns and lower volatility compared to investing in a single sector.

Key investment stocks include Hyundai Rotem, Doosan Enerbility, HD Korea Shipbuilding & Offshore Engineering, Hanwha Aerospace, and Samsung Heavy Industries.

The background behind the fund's rapid high returns includes the normalization of global conflicts, deepening tensions between the United States and China, and paradigm shifts driven by artificial intelligence (AI).

In the defense sector, geopolitical conflicts such as the armed clash between Israel and Palestine have heightened expectations for orders from K-defense companies in the global market. Hanwha Aerospace's stock price rose by about 20% after announcing on August 18 that it had signed a guided weapons supply contract with a Middle Eastern country. Hyundai Rotem, which signed a second-phase contract worth 9 trillion won for K2 tanks with Poland in the second half of this year, also saw its stock price rise by about 12% after the contract announcement on August 4.

Choi Youngjin, Chief Marketing Officer (CMO) of Hanwha Asset Management, said, "We are now in a new Cold War era," and added, "Global armed conflicts can occur continuously." He continued, "Efforts for self-reliant national defense to prevent these conflicts will persist, and order calls for K-defense companies from various countries will continue as well."

In the shipbuilding sector, demand for eco-friendly vessel replacements and steady orders for liquefied natural gas (LNG) carriers are expected to continue. Above all, the role of Korean shipbuilders in rebuilding the U.S. shipbuilding industry is becoming increasingly significant.

For nuclear power, the explosive increase in electricity demand triggered by the spread of AI is a major factor. Although stock prices have remained steady after rising in the first half of the year, the overall trend of the nuclear power industry is expected to remain upward.

Choi Youngjin, CMO, advised, "Defense, shipbuilding, and nuclear power are industries that do not compete with China, representing a significant opportunity for Korea as an ally of the United States. As these are long-term growth themes, I recommend consistently investing through installment plans in individual pension and retirement pension accounts."