Hanwha Asset Management's TDF Solidifies Position... Ranked No.1 in Default Option TOP10

Hanwha Asset Management's TDF (Target Date Fund) has been incorporated in the highest proportion within the portfolios of leading default option retirement pension providers (default option sellers) in terms of returns. Since the implementation of the Default Option system last year, Hanwha Asset Management, which ranked second in the final approval process based on TDF criteria, is solidifying its position as a 'TDF powerhouse.'

According to the 'Pre-designated Operation Method Comparison Disclosure' announced by the Ministry of Employment and Labor in July 2023 for the second quarter, the top-performing default option retirement pension provider over the past six months was 'KB Kookmin Bank Default Option High-Risk Portfolio 1,' which recorded a return of 14.16%. Additionally, 'Hanwha Investment & Securities Default Option High-Risk TDF 2' ranked second with 11.47%, and 'Shinhan Investment Corp Default Option High-Risk Portfolio 1' came in third with 11.41%.

Notably, among the top 10 retirement pension providers by return, Hanwha Asset Management's TDF incorporation rate within their portfolios is the highest among domestic asset management companies at 28%. Analysis of the portfolios of the top 10 default option retirement pension providers revealed that five portfolios included Hanwha Asset Management's TDFs. The vintages of Hanwha Asset Management's TDFs included in these portfolios varied, such as 2040, 2045, and 2050. The vintage refers to the numbers attached to TDF product names like 2030, 2040, 2050, indicating the target retirement year for investors.

This data demonstrates that Hanwha Asset Management's TDFs have been chosen by many retirement pension providers (default option sellers). Hanwha Asset Management's TDFs have been incorporated by all five major banks (Kookmin, Shinhan, NongHyup, Woori, Hana) and were selected by a total of 20 retirement pension providers during the default option approval process initiated last year, resulting in inclusion in 37 portfolios. When the default option qualified products were announced, Hanwha Asset Management's performance was widely regarded as a 'surprise achievement' relative to the fund size.

Retirement pension providers such as banks, securities firms, and insurance companies categorize risk levels into ultra-low risk, low risk, medium risk, and high risk, and construct various portfolios by incorporating and combining financial products from asset management companies suitable for each risk level, offering choices tailored to customers' investment preferences. For asset management companies responsible for managing financial products, providing products that retirement pension providers want to include in their portfolios is crucial.

Furthermore, the fact that Hanwha Asset Management's TDF has the highest incorporation rate in the top 10 retirement pension providers' portfolios by return indicates that 'Hanwha LIFEPLUS TDF' has significantly contributed to the increase in portfolio returns for retirement pension providers. Hanwha Asset Management's products across all vintages (2025, 2030, 2035, 2040, 2045, 2050) have ranked within the top three in terms of three-year returns (as of the 21st, based on Fundsquare), demonstrating 'top-tier' performance in terms of long-term results.

This reflects the ability to deliver stable returns despite changes in domestic and international market environments, rather than short-term performance spikes. In terms of highest returns, the 2050, 2045, and 2040 vintages recorded 19.27% (3rd place), 18.86% (2nd place), and 17.71% (2nd place), respectively.

Choi Young-jin, Head of Strategic Business Division at Hanwha Asset Management, stated, "Even among TDF products optimized for pension asset management, there are significant performance differences due to factors such as long-term returns, risk-adjusted returns, volatility, and currency hedging strategies. Identifying the factors that differentiate the performance of TDFs that consistently deliver steady long-term results regardless of when they are joined will help select good investment solutions."

Meanwhile, Hanwha Asset Management is showing a differentiated approach by strengthening its partnership with JP Morgan in TDF management, unlike other asset managers pursuing independent paths. Hanwha Asset Management also co-designed the glide path?a mechanism that adjusts the proportion of safe and risky assets according to the life cycle?with JP Morgan. The glide path is a key measure that determines TDF performance. The 'active-passive hybrid management' and 'currency open and currency hedging strategies,' which are applied differently according to asset characteristics, are also features of Hanwha Asset Management's TDFs and contribute significantly to their performance.

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