Shinhan Asset Management Strengthens TDF Management Capabilities to Achieve Stable Performance

2022 Asia Fund Awards - TDF (Growth Strategy Type) Best Asset Manager Selected

Jae-Min Cho, CEO of Shinhan Asset Management

[Asia Economy Reporter Hwang Yoon-joo] Shinhan Asset Management was selected as the Best Manager for the 2022 Asia Economy Fund Awards TDF Growth Strategy category.

Shinhan Asset Management focused on the fact that the MZ generation is familiar with media such as YouTube and is more sensitive to returns, significantly strengthening its pension-related organization. In 2021, it established the Pension Digital Solutions Headquarters and newly recruited the Head of Global Operations and the Head of the Investment Strategy Center, completing the internalization of TDF’s own management capabilities. In particular, the internalization of TDF’s own management capabilities was a masterstroke that enabled consistently stable performance in the recent volatile financial market environment.

Shinhan Asset Management is implementing faster market responses and flexible strategies through internalized management. For example, its currency strategy for overseas stocks is based on an open currency position, but considering the won-dollar level, it has already increased the hedge ratio to respond. To prepare for interest rate hikes and inflation, it has reduced bond duration by increasing the proportion of short-term bonds or expanded the allocation to commodities. Shinhan Ma-eum Pyeonhan TDF selectively invests in excellent global investment targets rather than focusing on in-house products, actively diversifies investments, and clearly distinguishes itself from other industry TDFs with market-appropriate responses and differentiated currency strategies.

This concentration of the company’s capabilities has resulted in top-tier returns for the 'Shinhan Ma-eum Pyeonhan TDF' and an inflow of funds from the MZ generation. As of the end of last year, the 1-year returns of the MZ generation retirement timing tailored 'Shinhan Ma-eum Pyeonhan TDF' 2040, 2045, and 2050 series were 15.75%, 16.08%, and 16.57%, respectively (based on offline Class for retirement pensions), ranking at the top of the industry by series. Unlike previous fund inflows concentrated in the 2025 and 2030 series mainly subscribed by those in their 40s and 50s, since the beginning of this year, the proportion of new inflows into the 2040, 2045, and 2050 series, subscribed by the MZ generation, has expanded to about 50%.

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