Investing in "Future Leading Themes"... Subscription Open for Hanwha Dynamic Concentrated Buying EMP Target Conversion Fund

Korean benchmark indices, semiconductors, physical AI, and more
Concentrated investment in future leading themes
Shift to bond-focused portfolio upon reaching target return

Hanwha Asset Management announced on the 25th that it is raising subscriptions for the Hanwha Dynamic Concentrated Buying EMP Target Conversion Fund.

The Hanwha Dynamic Concentrated Buying EMP Target Conversion Fund is a product that invests half of its assets in domestically listed thematic ETFs expected to lead the future market and the other half in Korean short-term bond ETFs. It is designed to quickly capture themes in a rapidly changing market environment, while using short-term bond ETFs to hedge interest rate volatility.

The target conversion return is 7%. Once this level is reached, the portfolio is converted to one centered on short-term bond ETFs to minimize return volatility.

The Hanwha Dynamic Concentrated Buying EMP Target Conversion Fund selects and invests intensively in about 10 to 15 key thematic ETFs. Representative themes include major Korean indices, semiconductors, physical AI, power, and K-Defense. Themes are selected using a bottom-up approach based on stock analysis, including financial statements, growth outlook, investment status, and share price trends.

In the case of thematic ETFs, the top approximately 3 to 8 constituents by weight often account for a large portion of the portfolio, which makes it possible to select ETFs based on individual stock analysis. The fund determines trading timing according to the earnings growth rate, volatility, and share price trends of the stocks held by the selected ETFs.

Looking at the recent market, the rotation cycle of leading themes has shortened, making early identification of themes more important. At the same time, as the expected returns of leading themes have increased, their volatility has also risen, so investment performance now varies greatly depending on trading timing. The Hanwha Dynamic Concentrated Buying EMP Target Conversion Fund actively responds to changes in market conditions through data-driven continuous monitoring and rebalancing. It is attractive for investors who find it difficult to make swift investment decisions and responses in a rapidly changing market environment.

This fund is a closed-end fund with a fixed subscription period, and subscriptions are available from the 23rd through March 6 via Shinhan Bank, Kyobo Securities, Hana Securities, Hanwha Investment & Securities, and the Hanwha Asset Management PINE app. The fund will be created with the final amount raised and is scheduled to be launched on March 9.

Wang Seungmook, Head of Overseas Equity Management at Hanwha Asset Management, said, "Many investors often suffer losses after investing in overheated themes," adding, "By selecting themes through a bottom-up approach that starts with stock analysis, investors can significantly reduce the likelihood of paying opportunity costs, such as buying leading themes one step too late or tying up capital for a long time while waiting for a rebound in themes whose momentum has already disappeared."

He added, "Based on our know-how in successfully managing public active funds and target conversion funds, we will identify future leading sectors and appropriate trading timings to help grow investors' assets."