Hanaro TDF Achieves Top Profitability and Stability... Outperforms Industry Average in Long-Term Returns

NH-Amundi Asset Management announced on July 16 that the 'Hanaro TDF Series' has demonstrated its management capabilities by ranking among the industry's top performers in terms of long-term returns and stability.

According to fund evaluation firm KG Zeroin, as of July 14, the Hanaro TDF Series ranked first in five-year returns among retirement pension class management funds for the 2025, 2030, 2035, and 2040 vintages, and second for the 2045 vintage.

Over the past five years, the cumulative return for TDF2045 was 57.1%, surpassing the industry average of 46.3%. TDF2040 posted 55.5% (industry average 43.1%), TDF2035 achieved 48.6% (38.1%), TDF2030 recorded 41.5% (32%), and TDF2025 delivered 34.6% (23.2%), showing strong performance across all vintages.

TDF stands for Target Date Fund, a pension-specialized fund that allocates assets by gradually reducing the proportion of risk assets and increasing safe assets according to the target year (vintage) designed based on the expected retirement date. Due to the nature of pension products, long-term performance is considered a key evaluation criterion, rather than short-term results.

In addition to its high returns, the Hanaro TDF Series also achieved top-tier results in the Sharpe ratio, a stability indicator, over the past five years. The Sharpe ratio measures risk-adjusted returns, with a higher value indicating more stable excess returns with lower volatility.

The five-year Sharpe ratios were 0.69 for TDF2045 and TDF2040, 0.61 for TDF2035, 0.54 for TDF2030, and 0.47 for TDF2025, significantly outperforming the industry average of approximately 0.2 to 0.5.

The Hanaro TDF incorporates nearly 30 years of global TDF management know-how through investment advisory from Allspring Global Investments (formerly Wells Fargo Asset Management), the world's first TDF provider.

NH-Amundi Asset Management has developed an asset allocation model optimized for the life cycle of Korean investors through joint research with Allspring. The company is currently applying a dynamic risk management strategy that enables a defensive response during periods of increased market volatility. In addition, by employing a currency exposure strategy for global equity investments, the fund is designed so that a stronger US dollar can help offset potential equity losses during periods of heightened volatility.

Thanks to its strong performance, interest from retirement pension investors is growing. As of July 14, the net asset value of the Hanaro TDF Series stood at 583.3 billion won, an increase of about 80 billion won in just three months since surpassing 500 billion won at the end of March.

Kim Seokhwan, Head of Global Solutions at NH-Amundi Asset Management and manager of the Hanaro TDF, stated, "We are doing our utmost to improve the performance of the Hanaro TDF through our collaboration with Allspring Global Investments." He added, "While our core strategy is long-term asset allocation, we also plan to flexibly adjust the proportion of risk assets in response to market changes and make strategic adjustments by considering the relative attractiveness of various asset classes."

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