Default Option TDF Yield Leader 'Shinhan Maum Pyeonhan TDF'

Top 5 TDFs by AUM Achieve Highest Year-to-Date Returns
Distinctive Feature: Inclusion of Individual Bonds and Stocks Based on Fund Manager's Judgment

Shinhan Asset Management announced on the 10th that its flagship retirement pension fund and default option product, the Shinhan Ma-eum Pyeonhan TDF series, is leading the industry in performance for the first quarter.

Looking at the performance of default option product groups of the top five asset management companies by TDF operating scale in the asset management industry as of April 5, the Shinhan Ma-eum Pyeonhan TDF series recorded returns in the 5-7% range since the beginning of the year, ranking first in the 2025-2050 vintages. In particular, the 2050 and 2055 vintages, targeting the MZ generation, recorded returns exceeding 7%, showing a remarkable contribution to the asset growth of young people. As outstanding performance led to market trust, 10.5 billion KRW was inflowed in March alone, the highest in the industry. This accounts for about 40% of the 26.6 billion KRW inflow into the entire industry’s TDFs in March.

Such differentiated performance is attributed to Shinhan Asset Management’s unique strategy that strengthens management responsibility. The Shinhan Ma-eum Pyeonhan TDF selectively invests not only in its own products but also in various excellent global products through an open universe. Recently, it has also incorporated domestic individual bonds and overseas individual stocks. In December last year, it included high-interest, high-quality capital bonds with a one-year maturity and about 6% interest rate to secure high yields stably. In early March this year, it incorporated Microsoft and Nvidia stocks at about 1% each, which are expected to lead future industrial growth, and since then, it has shown returns significantly exceeding the US S&P 500 index, helping improve the performance of the Shinhan TDF series.

Additionally, Shinhan Asset Management has internalized a process to independently generate the TDF glide path (lifecycle asset allocation strategy), which is key to achieving long-term investment goals, and applies it to TDF fund management. This differentiates it from some asset managers who outsource management to foreign firms and serves as a basis for quick market response and flexible currency strategies.

Kim Seong-hoon, head of the Global Multi-Asset Team at Shinhan Asset Management, said, “Investments in individual bonds and stocks are made under an investment process that proactively manages risks. The Shinhan TDF fund is operated not by taking excessive risks simply to achieve excess returns but by stably managing risk-adjusted performance under a strict fund management process to improve the long-term performance of the TDF fund.”

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