Hungkuk Asset Management, the dollar bond market mixed funds 40

Today announced the release of the 'dollar debt mix 40 funds investing in the financial newspaper Korea Seo Hye Rin nine journalists] Hungkuk Asset Management US bonds and domestic equities (representing gimhyeonjeon). Whereas who had been released on an existing bond hybrid funds invested in domestic bonds and domestic equities, this fund is an asset allocation effect enhanced by pictures of US bonds in dollar assets form rather than domestic debt is compared to existing domestic bonds mixed reliably superior performance I conceived the ability to pay.

Most investors know empirically the depreciation of the domestic assets (whether debt or equity), which recognizes the strength of the US bonds and the dollar due to safe haven displacement phenomenon when the market is unstable, as the global financial crisis, and relatively risky assets is.

The funds were from an idea of ​​analyzing the correlation between US bonds and domestic equities based on historical data and simulation results when algorithms investment in two asset using the correlation between the assets, significantly reducing steady revenue volatility It was designed in a conclusion that can be achieved.

The basic strategy is to invest 60% of its assets in US bonds. By investing in US Treasury bonds and Excellence while ensuring a stable interest income on reserve to $ hwanhetji not seek to effect control the downside risk of domestic shares. During the past decade, domestic stocks and the won-dollar exchange rate KOSPI negative -0.7 - shows the correlation of (Bloomberg data) (). In other words, that the won-dollar exchange rate to the dollar revenue from the holdings of asset price declines offset the rise when the domestic price fall.

Also, regularly realized profits by reducing the proportion of assets revenues generated through the share rebalancing between domestic stocks and dollar bonds and by giving increased less right assets, revenue basis the average convergence (to return), developed between the so-called asset build is going to take the structure.

Hungkuk Asset Management Chief Marketing Officer (CMO) Kim Jaeseong, managing director, "This product is not a question of do 'rimyeo," a kind of versatile algorithms funds utilizing the phenomenon of the market, the essence of algorithmic approach mobilizing much complex mathematical logic, market how much better understanding of the phenomenon and emphasized that even if the surface of the problem I Did in response to procedural, rather than less complex to apply very likely to be a more potent weapon in actual investment. "

In addition, he said, "to the global market Change of asset movements greatly depending on the preferred orientation between safe assets and risky assets, allowing a relatively old bonds mixed, and the difference by investing in the safe haven dollar bonds and risky assets in stocks at the same time, low the steady revenue generation under the more volatility is expected, saying, 'particularly significant in the long-term investment strategy that explained the strategy of further increases, "said fund.

The fund is a product that I can recommend going to bring the shares to existing private pensions or, as an alternative to pension products, while dollar a portion of the assets that holds about 40% of investors. Funds will be available through a single financial investment, Korea Investment & Securities, Korea funds online, Hungkuk Securities branch or online.



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