Shinhan Asset Management's 'Shinhan Fast Response TDF 2030' Ranks First in 3- and 6-Month Returns

Shinhan Asset Management announced on November 13 that the 'Shinhan Fast Response TDF 2030' recorded returns of 6.91% and 15.65% over three and six months, respectively, as of November 11. This performance ranked it first among TDF 2030 vintage funds in terms of returns.

The 'Shinhan Fast Response TDF' is a target date fund (TDF) product that adjusts the allocation between risk assets and safe assets based on the investor's retirement date. It is available in two vintages: 2030 and 2060. While traditional TDFs implement gradual asset allocation based on a long-term glide path, the Shinhan Fast Response TDF series differentiates itself by employing a dynamic asset allocation strategy that responds quickly to changes in market conditions.

This fund diversifies investments across global developed and emerging market equities and bonds, and actively adjusts the allocation among equities, bonds, and alternative assets according to different economic cycles. During bull markets, the proportion of risk assets is increased, while in periods of heightened volatility, the fund swiftly shifts to defensive assets through tactical asset allocation strategies. This strategic management approach mitigates short-term volatility while maximizing profitability, which was a key factor in achieving the top return ranking.

Additionally, the redemption cycle has been shortened compared to previous products, allowing investors to redeem within four business days, thereby improving convenience. Investors can choose between a currency-hedged type and an open type.

Kim Euichan, Head of the Multi-Asset Management Center at Shinhan Asset Management, stated, "The Shinhan Fast Response TDF has expanded tactical asset allocation compared to existing TDF series, increasing exposure to assets that have recently delivered strong performance, such as the Korean stock market, Korean semiconductor sector, and large-cap U.S. technology stocks. This tactical asset allocation has resulted in significant excess returns and excellent performance. We will continue striving to achieve differentiated management results through rapid market response in the future."

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