"Continuous Asset Allocation After Retirement"… Shinhan BNPP Launches Ansim Jisok-type TDF(H)

Short-Term Volatility Response to Exchange Rate Changes Using Currency Hedging Strategy

[Asia Economy Reporter Minwoo Lee] Shinhan BNP Paribas Asset Management has launched a fund product that continuously allocates assets and invests in domestic and international exchange-traded funds (ETFs) even after retirement.

On the 17th, Shinhan BNP Paribas announced the launch of the lifecycle fund (TDF) called 'Shinhan BNPP Anshim Jisokhyeong TDF(H)'. Unlike the 'Shinhan BNPP Ma-eumpyeonhan TDF' launched in June 2017, which targets the retirement point as the goal and does not allocate assets after retirement, this product sets the target point up to 30 years after retirement. Additionally, unlike the 'Shinhan BNPP Ma-eumpyeonhan TDF', which used a currency open strategy to hedge volatility risk caused by exposure to advanced currencies during market volatility expansion, this product implements a currency hedge strategy on assets denominated in advanced country currencies to eliminate short-term volatility caused by exchange rate fluctuations.

Subscriptions are available at all branches of Shinhan Bank and Shinhan Financial Investment. Currently, three products have been launched: 'Shinhan BNPP Anshim Jisokhyeong TDF2030(H)', 'Shinhan BNPP Anshim Jisokhyeong TDF2035(H)', and 'Shinhan BNPP Anshim Jisokhyeong TDF2040(H)'. Additional products with numbers such as 2025, 2045, and 2050 will be sequentially released in the future.

A Shinhan BNPP official explained, "This product is suitable for customers who need continuous asset management both before retirement, during the accumulation phase of retirement funds, and after retirement, during the withdrawal period, as well as for customers who want to eliminate short-term exchange rate volatility risk."

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