Hanwha Asset Management announced on the 19th that it will list the "PLUS U.S. NASDAQ 100 U.S. Treasury Mixed 50" exchange-traded fund (ETF).
The PLUS U.S. NASDAQ 100 U.S. Treasury Mixed 50 is a bond-mixed fund that invests 50% in the NASDAQ 100 index and 50% in ultra-short-term U.S. Treasuries with a maturity of less than 3 months. All of the 50% investment limit in stocks within the bond-mixed fund is focused on the NASDAQ 100.
Hanwha Asset Management noted that it targets active investors looking to increase the stock investment ratio in retirement pension (DC·IRP) accounts as much as possible. Under current regulations, retirement pension accounts can only invest up to 70% of assets in risk assets such as stocks. The remaining 30% must be invested in safe assets such as savings, bonds, and bond-mixed funds.
By using the PLUS U.S. NASDAQ 100 U.S. Treasury Mixed 50, it is possible to invest up to 85% of the retirement pension account in the NASDAQ 100. This involves allocating 70% of the retirement pension to an ETF tracking the NASDAQ 100 and assigning the remaining 30% to the PLUS U.S. NASDAQ 100 U.S. Treasury Mixed 50.
Hanwha Asset Management also explained that it can control portfolio volatility by incorporating ultra-short-term U.S. government bonds with maturities of less than 3 months. Ultra-short-term U.S. government bonds have the advantage of significantly lower default risk, and their short maturities mean less price volatility due to interest rate changes.
Kim Jung-seop, head of the ETF business at Hanwha Asset Management, said, "If you are an active investor aiming to enhance the long-term performance of your retirement pension, you can allocate the mandatory safe asset ratio to this product to increase your expected revenue."