Shinhan Asset Management TDF Grows 120%, Outpacing Market Average

Shinhan Asset Management announced on September 25 that the total assets under management for its TDF (Target Date Fund) products have surpassed 1.7 trillion won.

The domestic TDF market has grown by more than 100%, from 10.3 trillion won at the end of 2022 to 20.8 trillion won. During the same period, Shinhan Asset Management’s TDF assets increased from 770 billion won to 1.7 trillion won, marking a 120% growth rate. This outpaces the market average. The company attributes this achievement to its stable management and differentiated product lineup, which have attracted investors.

Shinhan Asset Management is expanding investor choices by offering three TDF product lines tailored to investor preferences and objectives: 'Maumpyeonhan', 'Long-Term Growth', and 'Quick Response'. Each TDF is based on a distinct strategy, providing investors with both long-term stability and profitability, thereby strengthening competitiveness in the market.

The Shinhan Maumpyeonhan TDF is the company’s flagship product, launched in 2017, and invests in a diversified portfolio of global stocks and bonds. As a fund-of-funds, it employs a To-type glide path strategy that gradually adjusts the allocation between equities and safe assets as the retirement date approaches. This approach enables long-term asset allocation and risk management.

Depending on market conditions, the fund actively rebalances its portfolio by adjusting the weight of U.S. semiconductor and technology stocks and increasing exposure to financial and high-dividend stocks, seeking both stability and growth. Thanks to this strategic management, the Shinhan Maumpyeonhan TDF 2050 has achieved an impressive 68.43% return over the past five years.

Launched in 2020, the Shinhan Long-Term Growth TDF is a currency-hedged product that focuses on future growth industries such as artificial intelligence, carbon neutrality, robotics, blockchain, and bio-healthcare. It invests directly in global innovative companies like Nvidia and GE Vernova, aiming to maximize long-term growth potential. The fund is designed to gradually reduce equity exposure after retirement while continuing to pursue growth opportunities.

The Shinhan Long-Term Growth TDF 2035 vintage recorded a three-year return of 42.90%, while the 2040 vintage posted a three-year return of 45.72%, demonstrating the effectiveness of the long-term growth theme strategy.

On September 10, Shinhan Asset Management launched the new 'Shinhan Quick Response TDF.' Compared to previous products, the redemption cycle has been significantly shortened, allowing investors to receive redemption proceeds within four business days. Building on the performance and expertise of its existing TDF series, the fund employs a tactical asset allocation strategy that actively adjusts the balance between risk and defensive assets according to market conditions, with a focus on minimizing volatility risk.

Kim Choongsun, Executive Director at Shinhan Asset Management, stated, "From the Maumpyeonhan TDF, which adjusts asset allocation according to retirement timing, to the Long-Term Growth TDF reflecting future industry growth themes, and the Quick Response TDF that swiftly responds to market volatility, Shinhan Asset Management has established a full lineup of TDFs to meet investor needs." He added, "We will continue to do our utmost to provide stable retirement preparation solutions."

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