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A promotional image for Hana Chinese No. 1 Stocks Wrap by Hana Daetoo Securities |
Wrap accounts tailored for major global economies have become a viable investment strategy amid the prolonged trend of low interest rates, Hana Daetoo Securities said on Thursday.
“We are positively surprised at the growing popularity of our wrap accounts for overseas stocks and the exchange traded funds,” said a spokesperson of Hana Daetoo, pointing to the United States, China and other countries that are expected to see steady growth in the medium and long term.
Amid rising demand for overseas wraps, the company recently released two new wrap accounts: “Hana Advanced Global Leaders & ETF Wrap” and “Hana Chinese No. 1 Stocks Wrap.”
Launched in October, Hana Advanced Global Leaders & ETF Wrap involves investment in stocks and ETFs in advanced economies such as the U.S., Japan and Europe. It mainly targets the blue chip stocks of companies listed in the U.S., as well as the ETFs linked to various asset classes, such as stocks, bonds and real estate.
The Hana Chinese No. 1 Stocks Wrap targets Chinese stocks with high growth potential. As China is expecting its local economy and domestic demand to grow, Hana Daetoo said that long-term investors in Chinese blue chip companies could expect relatively high compound interest earnings.
As the two overseas wrap accounts are invested through a domestic brokerage, they are exempt from the 22 percent capital gains tax imposed on direct overseas investment. They require an initial investment of at least 30 million won ($28,000) under a 2.5 percent annual wrap fee and no buyback penalties.
By Chung Joo-won (
joowonc@heraldcorp.com)
