Shinhan Asset Management Surpasses 100 Billion KRW in Default Option Fund Assets Under Management

Shinhan Asset Management announced on the 17th that the fund management scale of the default option (pre-designated operation system) has surpassed 100 billion KRW. Based on a stable management performance and a diverse lineup of default option-exclusive products suitable for long-term investment, more than 50 billion KRW of funds have flowed in since the beginning of this year.

Looking at Shinhan Asset Management’s default option product lineup, it includes various products suitable for pension investment, such as the representative pension fund ‘Shinhan Ma-eum Pyeonhan TDF Series,’ the ‘Shinhan Big Cycle Asset Allocation Fund,’ an efficient asset allocation product utilizing US stocks and domestic bonds, and the ‘Shinhan Balance Pro Series,’ which combines Shinhan Investment Corp.’s investment portfolio advisory service.

The product that contributed most to the increase in default option assets under custody is the representative pension fund, the ‘Shinhan Ma-eum Pyeonhan TDF Series.’ According to Zeroin, as of the 13th, the one-year performance of all vintages (2030, 2035, 2040, 2050) were 12.11%, 14.60%, 16.48%, and 18.59%, respectively, all exceeding double digits. This figure surpasses the average return of default option funds (13.83%).

Despite a short management period since its establishment in December last year, the ‘Shinhan Big Cycle Asset Allocation Fund,’ newly selected for the default option portfolio, is also proving solid management performance. As of the 13th of this month, according to Zeroin, it recorded a year-to-date return of 8.55%. This exceeds the average year-to-date return (5.89%) of the 28 balanced funds (BF) included in the entire default option by about 2.66 percentage points.

The ‘Shinhan Big Cycle Asset Allocation Fund’ invests 60% in US stocks, which will continuously lead the global economy in the future, and 40% in domestic bonds, which can pursue stable interest income. It is characterized by being designed as an optimized product for pension investment through efficient asset allocation. Also, as a retirement pension product, its lowest level of fees considering long-term investment is cited as an advantage. The total fee of the ‘Shinhan Big Cycle Asset Allocation Fund’ is 0.22%, allowing for cheaper investment compared to the average total fee (0.45%) of all default option-exclusive funds, maximizing the compound effect of long-term investment.

Ryu Ji-eun, Head of D/T Marketing Planning Office at Shinhan Asset Management, said, “Retirement pension management is an essential preparation process to maintain a stable life after retirement, and the importance of the default option (pre-designated operation system), which is the easiest way to secure stable retirement income, will be further emphasized.” She added, “We will continue to provide optimal investment solutions to investors by strengthening the product lineup through diverse asset allocation.”

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