Hanwha Asset Management said on the 2nd that it has started recruiting for the 'Hanwha MAGA 2.0 target conversion' fund, which seeks to pursue profitability and stability through investments in stocks expected to benefit from Trump's second administration and short-term Government Bonds issued by the U.S. Department of the Treasury.
The Hanwha MAGA 2.0 target conversion fund is a bond-mixed fund that invests approximately 40% in foreign stocks expected to benefit from the Trump administration and about 60% in short-term Government Bonds of the U.S. with a duration (average recovery period of investment) within 2 years. It aims for a target revenue of around 7%. After achieving the target revenue rate, the fund will be converted into stable bond assets such as domestic bond-related funds to minimize revenue volatility.
In the institutional sector of stocks, the policies of Trump are classified into four key themes: ▲ tariff policy and corporate tax cuts ▲ deregulation ▲ energy infrastructure ▲ small government. The analysis will focus on sectors that will benefit and invest in industries that will be directly affected. As the Republican Party has gained control of both the White House and Congress with victories in the presidential and House and Senate elections, the foundation for policy implementation has been strengthened, and it is expected that policies will be promoted rapidly in the early stages of governance.
Wang Seung-mook, head of the overseas stock management team at Hanwha Asset Management, noted, "This year, sectors benefiting from the strong policy momentum expected to be pushed during Trump's second administration will lead the market rise" and added, "Corporate tax cuts will elevate stock valuations, and deregulation is likely to be implemented across various fields such as artificial intelligence (AI), environment, and finance, increasing the possibility of diverse beneficiary themes and sectors. "
In the institutional sector of bonds, investments will be made in U.S. Government Bonds to hedge against interest rate rising risks. Given the concerns that high tariffs and anti-immigration policies of the Trump administration could intensify inflationary pressures, stability will be ensured in the portfolio through short-term Government Bonds that provide stable interest revenue even during periods of rising interest rates. With expectations of prolonged U.S. dollar strength, a currency open strategy will be the foundation, but in case of rapid exchange rate fluctuations, currency hedging will be implemented within the bond weight limit.
Hanwha Asset Management plans to raise funds ahead of President Trump's inauguration on the 20th and manage them intensively. The Hanwha MAGA 2.0 target conversion fund can be subscribed through Hanwha Investment & Securities, Kookmin Bank, KB Securities, Hana Financial Group, Samsung Life Insurance, and Eugene Investment & Securities. The recruitment will conclude on the 10th of this month and will be established on the 13th.