Shinhan Asset Management, Shinhan Long-Term Growth TDF 3 Types Achieve 5% Returns Since Early This Year

Investment in Metaverse, Artificial Intelligence, Bio, Robotics, and Carbon Neutrality

[Asia Economy Reporter Kwangho Lee] Shinhan Asset Management announced on the 13th that all three currently managed ‘Shinhan Long-term Growth TDF’ vintages have exceeded a 5% return since the beginning of the year, showing top-tier performance for each vintage as of the 8th. The Shinhan Long-term Growth TDF series, launched in June 2020, is currently managed in three vintages: 2030, 2035, and 2040.

The Shinhan Long-term Growth Target Date Fund (TDF) series invests about 20% of its equity allocation in future growth themes. Depending on the fund manager’s judgment, it includes ETFs related to themes with high long-term growth potential such as metaverse, artificial intelligence (AI), bio, automation and robotics, and carbon neutrality to pursue additional returns.

The background for this top-tier performance includes ▲ the prolonged low-growth phase prompting efforts to overcome crises through technological innovation ▲ and expectations that the U.S. Federal Reserve (Fed) will slow the pace of interest rate hikes. It is expected to generate excess returns from long-term investments not only this year but also in future global economic driving business themes.

Ryu Ji-eun, head of the Retail Strategy Team at Shinhan Asset Management, said, “The Long-term Growth TDF is expected to deliver differentiated operational performance this year as expectations for a rebound in innovative companies and technology stocks grow. Future growth themes such as metaverse and artificial intelligence may experience high initial volatility, but once entering the market maturity phase, they can secure monopolistic dominance, making them suitable for TDFs aiming to secure long-term investment returns.”