Preface

The United States implemented their new reciprocal tariffs on August 1st, amidst rising geopolitical tensions and persistently high inflation pressure. While the Federal Reserve's rate cuts remain uncertain, Fubon Asset Management unveiled the 'Fubon Dual Core Strategic Multi-Asset Fund'. According to Chairman Huang Zhaotang, this groundbreaking multi-asset product, approved by the Financial Supervisory Commission, incorporates Bitcoin ETFs. It employs a risk management mechanism, adjusting asset allocations flexibly through company profit-driven and geopolitical risk-driven strategies. In times of global unrest, the fund ups its investment in gold, bitcoin, and stable government bonds.

Lazy bag

The 'Fubon Dual Core Strategic Multi-Asset Fund' is the first of its kind, featuring a Bitcoin ETF. It sports a dual-core strategy embodying a balance of offense and defense akin to a baseball tactic, aiming for low volatility and long-term returns.

Main Body

At the heart of today's complex financial climate, Fubon Asset Management's introduction of the 'Fubon Dual Core Strategic Multi-Asset Fund' marks a pioneering step toward integrating cryptocurrencies within an ETF framework. Amid an international economic landscape fraught with geopolitical conflict and unpredictable inflationary trends, investment strategies must evolve. Huang Zhaotang, at the launch event, expressed confidence in this unique financial product, which uniquely incorporates Bitcoin into its diverse asset classes. This approach intends to manage and mitigate risks by including non-traditional assets. The use of Bitcoin, in particular, is underpinned by findings that suggest a potential risk-reducing effect owing to its market behavior in times of increased political tension - a pivotal consideration for contemporary asset management frameworks.

The fund's strategy mimics a baseball player excelling in both offense and defense, highlighting momentum, volatility, and perfection. It responds adeptly to potential market downturns by reallocating resources into gold and Bitcoin, tactics designed to offer investors stability alongside capital growth prospects.

Manager Chen Zhenyi shared insights on the fund’s operational strategy - dual-core focus on company profit maximization and geopolitical risk management. By actively monitoring the Global Turbulence Scale (G.T.S.), the fund flexibly adapts asset distribution to reflect economic signals, from emerging market shifts to the foreign exchange rates. In doing so, it leverages traditional financial market data and quantitative indicators to maintain a balanced portfolio with controlled variability.

Moreover, prospective regulatory reforms in the United States might soon permit $9 trillion in pension assets to access cryptocurrency investments, suggesting a notable expansion in demand from institutional investors. This regulatory momentum is underscored by the recent congressional approval of key cryptocurrency laws, most notably the emergence of a comprehensive federal oversight framework facilitating digital asset utilization.

Designed for diverse investor profiles, the fund offers options across various currencies, including New Taiwan Dollars, Renminbi, and US Dollars, as well as both monthly distribution and accumulation mechanisms, catering to liquidity and capital appreciation needs. Fubon's flexible fee structure, offering both front-end and back-end plans, invites investors to select based on personal preferences, enhancing accessibility and customization.

Key Insights Table