Hanwha Asset Management Launches Subscription for Hanwha High Dividend Semiconductor Growth 30 Target Shift Fund

Hanwha Asset Management announced on July 9 that it has launched the "Hanwha High Dividend Semiconductor Growth 30 Target Shift Fund," which invests in Korea's key manufacturing sectors with global competitiveness and shareholder return beneficiaries, while adding stability through bonds. The company is now commencing full-scale fundraising for the product.

This fund will be available for subscription from July 9 to July 14, and will be established and begin operations on July 15. It is a closed-end, open-ended fund that invests up to 30% in equities and at least 70% in bonds, making it a bond hybrid fund. The target return rate is set at 6%, after which the fund will be managed as a bond-type product. After the target return is achieved, investors can redeem their shares or switch to the bond-type fund and hold it until maturity.

The main equity investment sectors are approximately 10% in high-dividend stocks and beneficiaries of share buybacks, and about 20% in core companies of major manufacturing industries such as semiconductors, artificial intelligence (AI), energy storage systems (ESS), power equipment, and robotics.

High-dividend and outstanding share buyback stocks are expected to benefit from the government's policy to strengthen shareholder returns. In addition, the introduction of separate taxation on dividend income is expected to drive investment demand toward high-dividend stocks, potentially leading to share price increases. The mandatory retirement of treasury shares can act as a factor to increase earnings per share (EPS) and per-share value by reducing the number of shares in circulation.

Representative themes in the semiconductor, AI, and K-strategic industry sectors include semiconductors, robotics and space, ESS, defense, shipbuilding, as well as critical minerals and contract development and manufacturing (CDMO). Amid escalating US-China hegemonic competition and global supply chain restructuring, the fund will selectively invest in approximately 5 to 10 top-tier global Korean manufacturing companies by comprehensively considering profit growth, short-term performance momentum, and valuation attractiveness.

Recently, the Korean stock market has seen a large-cap rally, centered on semiconductor and AI themes, with high volatility. This fund aims to capture the growth benefits of Korea's leading manufacturing companies, while limiting equity allocation to 30% in order to reduce volatility risk and enhance defensiveness.

Kim Hajong, Head of WM Marketing at Hanwha Asset Management, stated, "We recommend this fund to clients who wish to secure partial returns in highly volatile markets such as the current one, by investing approximately 30% in government and special bonds and 70% in other bonds, while leveraging two pillars of growth: the government's strengthened shareholder return policy and the benefits from US-China hegemonic competition."

The Hanwha High Dividend Semiconductor Growth 30 Target Shift Fund can be subscribed to through Hanwha Asset Management’s direct sales app PINE, as well as through Kwangju Bank, Hanwha Investment & Securities, Kyobo Securities, Daishin Securities, SK Securities, and Eugene Investment & Securities.

This content was produced with the assistance of AI translation services.