Shinhan Asset Management's TDF series tops W2tr in assets

Shinhan Asset Management said Thursday that assets under management in its flagship pension product, the target-date fund (TDF) series, have surpassed 2 trillion won ($1.4 billion). The milestone comes nine years after the firm launched its first TDF series in 2017, driven by inflows of more than 600 billion won this year alone.

Shinhan Asset Management currently operates two TDF series. Both products pursue a diversified investment strategy spanning domestic and US-listed equity ETFs and global bonds, automatically adjusting asset allocation in line with each investor's target retirement date. The firm said flexible portfolio management in volatile global financial markets and an expanded product lineup tailored to investor demand drove the growth in assets under management.

A TDF is a pension fund that automatically shifts the balance between higher-risk and lower-risk assets as an investor approaches retirement. The structure gradually reduces exposure to equities and other risk assets while increasing allocations to bonds and other safer instruments over the investor's life cycle — a strategy known as a "glide path," named for its resemblance to an aircraft on final approach.

The Shinhan TDF series has delivered consistent performance across key vintages. Based on Zeroin data as of Tuesday, the Shinhan Ppareun Daeeung Jeokgyeok TDF2035 posted a six-month return of 7.44 percent, ranking first among funds in the same vintage. The Shinhan Maeum Pyeonhan Jeokgyeok TDF2055 also ranked first in its vintage with a three-month return of 1.91 percent.

"The investment expertise we have built over nine years navigating various market cycles, combined with consistent performance, has earned the trust of pension investors and allowed us to reach 2 trillion won in assets under management," said Kim Gyeong-il, head of Shinhan Asset Management's WM pension channel division. "Going forward, we will further strengthen the stability and profitability of our products so that retirement and individual pension investors can invest with confidence, and we will expand our sales channels to reach more customers."