Shinyoung Asset Management Launches New TDF Product

[Asia Economy Reporter Minji Lee] Shin Young Asset Management announced on the 15th that it will launch Target Date Fund (TDF) products.

On this day, Shin Young Asset Management plans to launch Shin Young TDF Bond Mixed Securities Investment Trust, Shin Young TDF 2030 Mixed - Fund of Funds Securities Investment Trust, and Shin Young TDF 2040 Mixed - Fund of Funds Securities Investment Trust products.

TDFs are managed by setting the customer's retirement date as the target date. They are designed to perform asset allocation strategies tailored to the investor's life cycle by diversifying investments across various assets, from developed market stocks to emerging market bonds. In the early stages of management, the proportion of risky assets is high, and as the target date approaches, the focus shifts to stability.

For efficient TDF management, Shin Young Asset Management signed an advisory contract with Mercer, the world's No. 1 outsourced chief investment office (OCIO) institution. Mercer designed a glide path suitable for the life cycle of Koreans based on its experience in designing TDFs in various countries. This is an asset allocation curve that connects optimized asset rebalancing points by age group according to the investor's retirement timing. Shin Young Asset Management plans to provide advisory services on global investment asset selection based on accumulated outsourced management know-how.

A distinctive feature is that it allows for detailed diversification by investing in products from various asset management companies worldwide. Mercer evaluates and selects specialized sub-managers for each target asset class and performs outsourced management. Shin Young Asset Management’s TDF incorporates products managed by Mercer in a fund of funds structure. The Shin Young TDF series pursues a more meaningful global asset allocation effect by diversifying into a pool of verified investment strategies from leading global asset management companies.

It performs not only temporal asset allocation (vertical) tailored to the investor's life cycle but also spatial asset allocation (horizontal) at specific points in time simultaneously. The need for spatial asset allocation at a specific point arises because even funds with the same investment strategy can yield different results depending on the philosophy or style of different management companies. Based on judgments about the current market situation, asset allocation strategies are executed to manage portfolios optimally for each phase through allocations such as active-passive, growth-value, and inflation-deflation.

Namkwon Heo, CEO of Shin Young Asset Management, said, “The most regrettable part of domestic pension asset management is that investors are passive about asset allocation,” adding, “TDF products are suitable for domestic investors, and simply subscribing to a TDF can substitute for pension asset investment.”

Meanwhile, Shin Young Asset Management plans to gradually add products targeting even more distant future dates.

This content was produced with the assistance of AI translation services.