It is predicted that the overseas fund market will record double-digit growth in 2023. Macqwerty said it plans to expand its active ETF and pension portfolio through its ICA account.
On December 13, Macqwerty Asset Management released a report titled “2023 Overseas Fund Market Trend Forecast,” showing that the overseas fund market this year only grew by 3.4% due to increased market volatility, slowing the growth compared to the previous year. However, in 2023, it is expected to grow by 15.2% compared to 2022, achieving a total of USD 735.4 billion with market stabilization.
Macqwerty Asset Management said, “Recently, investors are showing great interest in this product,” and it seems that they will actively use a duration-type ICA (interest checking account) account. This product appears to be for individuals to trade duration-type ETFs as an alternative to regular bank fixed deposit, and for institutions to take advantage of being able to trade as many as they want at a lower price than OTC bonds.
Duration-type bond ETFs have similar characteristics to fixed deposits as interest income can be obtained at the expected rate of return at the time of purchase if held until maturity. Duration-type bond ETFs provide stable interest income in addition to expected yield to maturity, and can receive stable dividends compared to regular fixed deposits.
The ‘Macqwerty Bond Mix Fn’ is classified as a safe asset in retirement pensions. For this reason, you can invest up to 100% of your retirement pension reserves, making it easy to diversify your retirement pension portfolio. Investors can invest up to 70% of their retirement pension funds in risky assets. So, if an active investor who wants to increase the proportion of stocks invests 30% of his safe assets in the ETF, it has the same effect as investing up to 79% in stocks.
A Macqwerty official added, “Because it is possible to diversify investments by incorporating various bonds, it will be possible to compensate for the disadvantages of individual bond investments, which may be exposed to risks unique to the company by investing in one or two stocks in general.”