Hanwha Lifeplus TDF, No.1 in Returns Since Inception

[Asia Economy Reporter Hwang Yoon-joo] Hanwha Asset Management announced that its target date fund (Target Dated Fund), 'Hanwha Lifeplus TDF,' has demonstrated excellent long-term performance, ranking first in returns among funds of the same vintage since its inception.

According to Hanwha Asset Management on the 27th, the Hanwha Lifeplus TDF 2045 recorded a return of 32.76% over approximately 4 years and 2 months from its inception to the end of last month (March 22, 2018 to May 31, 2022), ranking first among products of the same vintage. This exceeds the KOSPI return of 7.23% during the same period by more than 25%.

A TDF is a fund that automatically reduces the proportion of risky assets and increases safe assets according to an asset allocation curve (glide path) based on the customer's retirement timing.

In the case of TDF 2045, 2045 is set as the retirement year, and as retirement approaches, the proportion of risky assets is reduced while the proportion of safe assets is increased.

The excellent long-term performance of Hanwha LIFEPLUS TDF is the synergy between JP Morgan's extensive TDF management know-how and the management strategies developed by Hanwha Asset Management.

Key management features include △ JP Morgan's long-term TDF management experience △ active + passive allocation strategy tailored to market characteristics △ dual foreign exchange strategies.

Hanwha Asset Management is jointly conducting data collection and result review with JP Morgan to create a glide path suitable for Koreans. Domestic assets are recommended by Hanwha, while other assets are recommended by JP Morgan, and both companies jointly review to compose the investment universe. A hybrid currency hedging strategy is applied by asset type, employing currency open positions for equities and currency hedging for bonds.

Generally, during market downturns, demand for key currencies causes the value of the dollar to rise, so maintaining currency open positions for equity assets is effective for long-term risk management. Conversely, currency hedging is applied to bonds as it is considered more effective in reducing volatility.

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